A portfolio manager summarises the input from forecasts in the following table:

Financial Asset	Average return	Beta ()	Residual standard deviation ()
Stock A	7.7%	0.8	12%
Stock B	2.4%	0.4	7%
Stock C	10.8%	1.2	15

Excess market return is 6% and the standard deviation of market return is 18%. Assuming that all variables are provided on an annualised basis, you are asked to perform the following tasks:

1. Using the Capital Asset Pricing Model to calculate the expected excess return, alpha values for these stocks
2. Calculate the weight of these stocks in the optimal risky portfolio