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Please Correct my mistakes. A portfolio manager summarizes the input from the macro and micro forecasters in the following table Micro Forecasts Residual Standard Expected
Please Correct my mistakes.
A portfolio manager summarizes the input from the macro and micro forecasters in the following table Micro Forecasts Residual Standard Expected Return(%) Beta Deviation (%) Asset Stock A Stock B Stock C Stock D 20 18 17 12 58 71 60 Macro Forecasts Expected Return Standard Deviation ( % ) Asset T-bills Passive equity portfolio 16 23 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 120% 1.60 % | (4.4) 100% Excess returns Alpha values Residual variances 3.401% | (4.001% 3,025 96 3,364 5,041 3,600 A portfolio manager summarizes the input from the macro and micro forecasters in the following table Micro Forecasts Residual Standard Expected Return(%) Beta Deviation (%) Asset Stock A Stock B Stock C Stock D 20 18 17 12 58 71 60 Macro Forecasts Expected Return Standard Deviation ( % ) Asset T-bills Passive equity portfolio 16 23 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 120% 1.60 % | (4.4) 100% Excess returns Alpha values Residual variances 3.401% | (4.001% 3,025 96 3,364 5,041 3,600Step by Step Solution
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