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

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A portfollo manager summarizes the input from the macro and micro forecasters in the following table: a. Calculate expected excess returns, alpha values, and residual variances for these stocks. (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round "Alpha values" to 1 decimal place.) b. Compute the proportion in the active portfolio and the passive index. (Negative values should be indicated by a minus sign, Do not round intermediate calculations. Enter your answer as decimals rounded to 4 places.) c. What is the Sharpe ratio for the optimal portfolio? (Do not round intermediate calculations. Enter your answer as decimals rounded to 4 places, d. By how much did the position in the active portfolio improve the Sharpe ratio compared to a purely passive index strategy? (Do not round intermediate caleulations. Enter your answer as decimals rounded to 4 places.) e. What should be the exact makeup of the complete portfolio (including the risk-free asset) for an investor with a coefficient of ris aversion of 3.1? (Do not round intermediate calculations. Round your answers to 2 decimal places.) A portfollo manager summarizes the input from the macro and micro forecasters in the following table: a. Calculate expected excess returns, alpha values, and residual variances for these stocks. (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round "Alpha values" to 1 decimal place.) b. Compute the proportion in the active portfolio and the passive index. (Negative values should be indicated by a minus sign, Do not round intermediate calculations. Enter your answer as decimals rounded to 4 places.) c. What is the Sharpe ratio for the optimal portfolio? (Do not round intermediate calculations. Enter your answer as decimals rounded to 4 places, d. By how much did the position in the active portfolio improve the Sharpe ratio compared to a purely passive index strategy? (Do not round intermediate caleulations. Enter your answer as decimals rounded to 4 places.) e. What should be the exact makeup of the complete portfolio (including the risk-free asset) for an investor with a coefficient of ris aversion of 3.1? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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