What is passive bond portfolio management? Briefly explain two different passive bond portfolio management strategies (25% weighting) b) A portfolio manager summarises the input from forecasts in the following table: Financial Asset Average return Residual standard over a risk-free deviation (1) rate Stock A 12.6% 1.2 26% Stock B 4.4% 0.8 23% Stock C 6.6% 0.7 24% Beta (B) Excess market return over a risk-free rate is 4% and the standard deviation of market return is 12%. All variables are provided on an annualised basis. You are asked to perform the following tasks: 0 Use the Capital Asset Pricing Model to calculate the expected excess return, alpha values for these stocks (20% weighting) Calculate the weight of these stocks in the optimal risky portfolio (20% weighting) C) Calculate the weight of the passive portfolio (20% weighting) (iv) What is the Sharpe's measure for the optimal portfolio and how much of it is contributed by the active portfolio