A portfolio manager summarizes the input from the macro and micro forecasters in the following table: Micro Forecasts As

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A portfolio manager summarizes the input from the macro andmicro forecasters in the following table: Micro Forecasts AssetExpected Return (%) Beta Residual Standard Deviation (%) Stock A 220.9 52 Stock B 11 1.5 60 Stock C 10 0.6 54 Stock D 8 0.7 49 MacroForecasts Asset Expected Return (%) Standard Deviation (%) T-bills7 0 Passive equity portfolio 10 21 Calculate the following for aportfolio manager who is not allowed to short sell securities. Ifallowed to short sell securities, the manager's Sharpe ratio is0.2782. a. What is the cost of the restriction in terms of Sharpe’smeasure? (Do not round intermediate calculations. Enter your answeras decimals rounded to 4 places.) b. What is the utility loss tothe investor (A = 2.6) given his new complete portfolio? (Do notround intermediate calculations. Round your answers to 2 decimalplaces.)