Calculate expected excess for Stock A and Stock B. Calculate expected alpha values for Stock A and Stock B. Calculate expected residual vatiances for Stock A and Stock B.

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A portfolio manager summarizes the input from the macro and micro forecasts in the following table: Micro Forecasts Asset Expected Return (%) Beta Residual Standard Deviation (%) Stock A 20 1.50 60 Stock B 18 2.00 40 Macro Forecasts Asset Expected Return (%) Standard Deviation (9) T-bills 5 0 Passive Equity Portfolio (m) 16 25 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% Instruction enter your response as a decimal number rounded to four decimal places. What is the Sharpe ratio for the optimal portfolio (consisting of the passive equity portfolio and the active portfolio (p))? A portfolio manager summarizes the input from the macro and micro forecasts in the following table: Micro Forecasts Asset Expected Return (%) Beta Residual Standard Deviation (%) 60 Stock A 20 1.50 Stock B 18 2.00 40 Macro Forecasts Asset Standard Deviation (%) Expected Return (%) 5 T-bills 0 Passive Equity Portfolio (m) 16 25 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%. Instruction: enter your response as a decimal number rounded to four decimal places. What's the M2 of the optimal portfolio