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

Residual Standard Deviation (%) Micro Forecasts Asset Expected Return (%) Beta D Stock A 20 1.50 60 Stock B 18 2.00 40 I I Macro Forecasts Asset T-bills Passive Equity Portfolio (m) Expected Return (9%) Standard Deviation (%) 5 0 16 25 a . Calculate expected excess returns, alpha values, and residual variances for these stocks, Instruction: Enter your answer as a percentage (rounded to two decimal places) for expected excess returns and alpha values. Expected excess return on stock a Expected excess return on stock B Alpha of stock a Alpha of stock B Instruction: Enter your answer as a decimal number rounded to two decimal places for residual variances. Residual variance of stock a Residual variance of stock B Instruction: for part b, enter your response as a decimal number rounded to four decimal places. b. Suppose that the portfolio manager follows the Treynor-Black model, and constructs an active portfolio (p) that consists of the above two stocks. The alpha of the active portfolio (p) is -18%, and its residual standard deviation is 150% . What is the Sharpe ratio for the optimal portfolio (consisting of the passive equity portfolio and the active portfolio (P)? Whats the M2 of the optimal portfolio