A portfolio Manager summarizes the input from the macro and micro forecasters in the following tables Micro Forecast Residual Expected Standard Asset Reum) Beta Deviation (*) Stock A 21 14 48 Stock B 18 18 60 Stock C 17 1.155 Stock D 12 1,050 Macro Forecasts Expected Standard Return Deviation Asset 15) T- 8 o Passive equity portfolio 16 23 a. Calculate expected excess retums,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 Stock Stock D Excess returns Restul variances b. Compute the proportion in the active portfolio and the passive index (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as decimals rounded to 4 places.) Proportion in Active Portello Proportion in Passive Index c. What is the Sharpe ratio for the optimal portfolio? (Do not round intermediate calculations. Enter your answer 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 answer as decimals rounded to 4 places.) Improvement in Shaperto e. What should be the exact makeup of the complete portfolio (including the risk-free asset) for an investor with a coefficient of risk aversion of 2.97 (Do not round intermediate calculations. Round your answers to 2 decimal places) Final Positions