Calculate expected residual variances for stocks A and B.

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 (%) T-bills 5 o Passive Equity Portfolio (m) 16 25 Calculate expected residual variances for stock A. Instruction: Enter your answer as a decimal (rounded to two decimal places) for expected excess returns and alpha values. 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 |(%) T-bills 5 O Passive Equity Portfolio (m) 16 25 Calculate expected residual variances for stock B. Instruction: Enter your answer as a decimal (rounded to two decimal places) for expected excess returns and alpha values