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		22		1.5		50
Stock B		20		2.1		59
Stock C		18		1.3		56
Stock D		14		1.4		44

Macro Forecasts

Asset Expected Return (%) Standard Deviation (%)

T-bills 11 0

Passive equity portfolio 16 23

1)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 0.2473. What is the cost of the restriction in terms of Sharpes measure?

2) b. What is the utility loss to the investor (A = 3.5) given his new complete portfolio? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Cases	Utility Levels
Unconstrained		%
Constrained		%
Passive		%