A portfollo manager summarizes the input from the macro and micro forecasters in the following table:

Required: $$

a$.$ Calculate expected excess returns, alpha values, and residual varlances for these stocks.

b$.$ Compute the proportion in the active portfollo and the passive Index.

c$.$ What is the Sharpe ratio for the optimal portfollo?

d$.$ By how much did the position in the active portfolio improve the Sharpe ratio compared to a purely passive Index strategy?

e$.$ What should be the exact makeup of the complete portfollo $($Including the risk$-$free asset$)$ for an Investor with a coefficlent of risk

aversion of $2\mathrm{.}8?$

Complete this question by entering your answers in the tabs below.

Calculate expected excess returns, alpha values, and residual variances for these stocks.

Note: Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round "Alpha values" to $1$