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If a manager is not allowed to sell short, he will not include stocks with negative alphas in his portfolio. So he will consider only
If a manager is not allowed to sell short, he will not include stocks with negative alphas in his portfolio. So he will consider only stock A and C in addition to the passive equity portfolio. Use this information to answer the following four questions.
The alpha for the active portfolio is:
The beta for the active portfolio is:
The weight in the active portfolio is:
The information ratio of the active portfolio is:
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