A portfolio manager summarizes the input from the macro and micro forecasters in the following tables:

Micro Forecasts

Asset Expected return (%)BetaResidual Standard Deviation (%)

Stock A 23 1.8 57

Stock B 20 2.0 71

Stock C 19 1.1 62

Stock D 15 1.3 51

Macro Forecasts

Expected Return Standard Deviation

Asset (%) (%)

T-Bills 12 0

Passive equity portfolio 18 30

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

Excess Returns _?____ % _ ?___ % __ _?__ % __?___ %

Alpha Values _?____ % __ ?___ % __ _?__ % ___?__ %

Residual variances__?_______ __?________?_______?___