Also, what is the cost of restriction in terms of Sharpe's measure?

thank you.

Assignment 9: Chapter 27 ( Saved Help Save & Exit Check m 3 Micro Forecasts Residual Expected Standard Asset Return (8) Beta Deviation [3] Stock A 25 1.2 64 Stock 9 22 2.0 74 Stock 21 21 1.1 Stock 16 1.0 58 60 points Book Macro Forecasts Expected Standard Return Deviation Aaset (2) T-bille 12 0 Passive equity portfolio 20 25 References 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.) Stock A Stock B Stock C Stock D % Excess returns Alpha values Residual variances % % b. Compute the proportion in the optimal risky portfolio. (Do not round intermediate calculations. Enter your answer as decimals rounded to 4 places.) Proportion c. What is the Sharpe ratio for the optimal portfolio? (Do not round intermediate calculations. Enter your answer as decimals rounded to 4 places.) Sharpe ratio 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 calculations. Enter your answer as decimals rounded to 4 places.) Assignment 9: Chapter 27 ( Saved Help Save & Exit Check m 3 Micro Forecasts Residual Expected Standard Asset Return (8) Beta Deviation [3] Stock A 25 1.2 64 Stock 9 22 2.0 74 Stock 21 21 1.1 Stock 16 1.0 58 60 points Book Macro Forecasts Expected Standard Return Deviation Aaset (2) T-bille 12 0 Passive equity portfolio 20 25 References 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.) Stock A Stock B Stock C Stock D % Excess returns Alpha values Residual variances % % b. Compute the proportion in the optimal risky portfolio. (Do not round intermediate calculations. Enter your answer as decimals rounded to 4 places.) Proportion c. What is the Sharpe ratio for the optimal portfolio? (Do not round intermediate calculations. Enter your answer as decimals rounded to 4 places.) Sharpe ratio 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 calculations. Enter your answer as decimals rounded to 4 places.)