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A portfolio manager summarizes the input from the macro and micro forecasters in the following table: Required: a. Calculate expected excess returns, alpha values, and

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A portfolio manager summarizes the input from the macro and micro forecasters in the following table: Required: a. Calculate expected excess returns, alpha values, and residual variances for these stocks. b. Compute the proportion in the active portfolio and the passive index. c. What is the Sharpe ratio for the optimal portfolio? d. By how much did the position in the active portfolio improve the Sharpe ratlo compared to a purely passive index strategy? e. What should be the exact makeup of the complete portfollo (including the risk-free asset) for an investor with a coefficient of risk aversion of 3.2 ? Complete this question by entering your answers in the tabs below. Calculate expected excess returns, alpha values, and tesidual variances for these stocks. Note: Negative values stipuld be indicated by a minus sign. Do oot round intermediate calculations. Round "Alpha values" to 1 deviation is provided as 20%. Compute the proportion in the active portfolio and the passive index. Note: Negative values, should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as decimals rounded to 4 places. Calculate using numbers in decimal form, not percentages. For example use " 20 " for calculation if standard deviation is provided as 20%. Complete this question by entering your answers in the tabs below. What is the Sharpe ratio for the optimal portfolio? Note: Do not round intermediate calculations. Enter your answer as decimals rounded to 4 places, Caloulate using numbers in decimal form, not percentages. For example use 720 for calculation if standard deviation is provided as 20%. Complete this question by entering your answers in the tabs below. By how much did the position in the active portfolio improve the Sharpe ratio compared to a purely passive index strategy? Note: Do not round intermediate calculations. Enter your answer as decimals rounded to 4 places. Calculate using numbers. in Complete this question by entering your answers in the tabs below. What should be the exact makeup of the complete portfolio (including the risk-free asset) for an investor with a coefficient of risk aversion of 3.2 ? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Calculate using numbers in decimal form, not percentages, for example use " 20 " for calculation if standard deviation is provided as 20%

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