A portfolio manager summarizes the input from the macro and micro forecasters in the following table:

Required:

Calculate the following for a portfolio manager who is not allowed to short sell securities$.$ If allowed to short sell securities$,$ the

manager's Sharpe ratio is $0\mathrm{.}3001.$

a$.$ What is the cost of the restriction in terms of Sharpe's measure?

b$.$ What is the utility loss to the investor $(A=2\mathrm{.}5)$ given his new complete portfolio?