4. A portfolio manager summarizes the input from the macro and micro forecasters in the following table: Micro Forecasts Asset Expected Return (%) Beta Residual Standard Deviation (%) Stock A 20 1.3 58 Stock B 18 1.8 71 Stock C 17 0.7 60 Stock D 12 1.0 55 Macro Forecasts Asset Expected Return (%) T-bills Passive equity portfolio 8 16 Standard Deviation (%) 0 23

a. Calculate expected excess returns, alpha values, and residual variances for these stocks.