Suppose you manage an equity fund with the following securities. Use the following data to help build an active portfolio.                   Input Data Vogt Industries Isher Corporation Hedrock, Incorporated   Alpha 0.012 0.006 0.016   Beta 0.277 1.015 1.630   Standard Deviation 0.156 0.168 0.181   Residual Standard Deviation 0.117 0.048 0.113   Information Ratio 0.1026 0.1250 0.1416   Alpha/Residual Variance 0.877 2.604 1.253             Market Data S&P 500 Treasury Bills     Expected Raturn 12.00% 2.50%     Standard Deviation 20.00% 0.00%               Required:         Using the information in the table above, please first calculate the initial weight of each stock in an active portfolio, using the Treynor Black approach. Then adjust each weight for beta.           (Use cells A5 to D14 from the given information to complete this question.)                   Treynor-Black Model Vogt Industries Isher Corporation Hedrock, Incorporated   Initial Position         Beta Adjusted Initial Position

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Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.