io manager summarizes the input from the macro and micro forecasts in the following table icro Forecasts Expected Return Beta 50 Residual Standard Deviation Asset Stock A Stock B 18 acro Forecasts %)Standard Deviation(%) Asset T-bills Passive Equity Portfolio (m Ex Return ( a. Calculate expected excess returns, alpha values, and residual variances for these stocks Instruction: Enter your answer as a percentage (rounded to two decimal places) for expected excess returns and alpha values. Expected excess return on stock A Expected excess return on stock B Alpha of stock A Alpha of stock B 15% 13% 1.5 % .9 % Instruction: Enter your answer as a decimal number rounded to two decimal places for residual variances Residual variance of stock A Residual variance of stock B 36 16 Instruction: for part b, enter your response as a decimal number rounded to four decimal places. b. Suppose that the portfolio manager follows the Treynor-Black model, and constructs an active portfolio (p) that consists of the above two stocks. The alpha of the active portfolio (p) is-18%, and its residual standard deviation is 150% What is the Sharpe ratio for the optimal portfolio (consisting of the passive equity portfolio and the active portfolio (p))? What's the M2 of the optimal portfolio? io manager summarizes the input from the macro and micro forecasts in the following table icro Forecasts Expected Return Beta 50 Residual Standard Deviation Asset Stock A Stock B 18 acro Forecasts %)Standard Deviation(%) Asset T-bills Passive Equity Portfolio (m Ex Return ( a. Calculate expected excess returns, alpha values, and residual variances for these stocks Instruction: Enter your answer as a percentage (rounded to two decimal places) for expected excess returns and alpha values. Expected excess return on stock A Expected excess return on stock B Alpha of stock A Alpha of stock B 15% 13% 1.5 % .9 % Instruction: Enter your answer as a decimal number rounded to two decimal places for residual variances Residual variance of stock A Residual variance of stock B 36 16 Instruction: for part b, enter your response as a decimal number rounded to four decimal places. b. Suppose that the portfolio manager follows the Treynor-Black model, and constructs an active portfolio (p) that consists of the above two stocks. The alpha of the active portfolio (p) is-18%, and its residual standard deviation is 150% What is the Sharpe ratio for the optimal portfolio (consisting of the passive equity portfolio and the active portfolio (p))? What's the M2 of the optimal portfolio