A portfolio manager summarizes the input from the macro and micro forecasters in the following table Asset Stock Stock Stock Stock Micro Forecasts Expected Residual Standard Return () Beta Deviation () 23 55 19 1.7 66 12 2.9 62 12 1.0 51 Macro Forecasts Expected Return Asset (X) T-bills . Passive equity portfolio 17 Standard Deviation (N) 26 a. Calcutate expected excess returns, alpha values, and residual variances for these stoc (Negative values should be indicated by a minus sign. Do not round Intermediate calculations. Round "Alpha values" to 1 decimal place.) Stock C 8% Excess retums Alpha values Residual variances Stock A 1491 521 3,364 Stock B 10 (36) 4356 Stock D 31% (50)% 2,601 0.896 3,844 b. Compute the proportion in the optimal risky portfolio (Do not round Intermediate calculations. Enter your answer os decimals rounded to 4 places.) Proportion 0.3468 c. What is the Sharpe ratio for the optimal portfolio? (Do not round Intermediate calculations. Enter your answers as decimals rounded to 4 places.) Sharpe ratio d. By how much did the position in the active portfolio improve the Sharpe ratio compared to a purely passive index strategy? (Do not round Intermediate calculations. Enter your answers of decimals rounded to 4 places.) Active portfolio e. What should be the exact makeup of the complete portfolio (including the risk free asset) for an investor with a comicient of risk aversion of 3.4? (Do not round Intermediate calculations. Round your answers to 2 decimal places) Final Positions Bills M $ 9 B 9 96 9 D Total %