Calculate expected alpha values for Stocks A and B$.$ A portfolio manager summarizes the input from the macro and micro forecasts in the following table: Micro Forecasts Macro Forecasts Calculate expected alpha values for stock $\backslash ($ A $\backslash )./$r$/$n A portfolio manager summarizes the input from the macro and micro forecasts in the following table: Micro Forecasts Macro Forecasts Calculate expected alpha values for stock B$.$A portfolio manager summarizes the input from the macro and micro forecasters in the following table:

$\backslash$table$[[$Micro Forecasts,$],[$Asset$,$Expected Return $(\%),$Beta,Residual Standard Deviation $(\%)],[$Stock $A,20,1\mathrm{.}3,58],[$Stock $B,18,1\mathrm{.}8,71],[$Stock $C,17,0\mathrm{.}7,60],[$Stock $D,12,1\mathrm{.}0,55]]$

$\backslash$table$[[$Macro Forecasts$],[$Asset$,$Expected Return $(\%),$Standard Deviation $(\%)],[$T$-$bills,$8,0],[$Passive equity portfolio,$16,23]]$

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

b$.$ Construct the optimal risky portfolio. using Treynor$-$Black technique with in$-$ depth calculations

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

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 portfolio $($including the risk$-$free asset$)$ for an investor with a coefficient of risk aversion of $2\mathrm{.}8?$