Alpha Forecasts Must Be ____________ to Account for Less-Than-Perfect Forecasting

Alpha forecasts must be ____________ to account for less-than-perfect forecasting quality.When alpha forecasts are ____________ to account for forecast imprecision,the resulting portfolio position becomes ____________.

A) shrunk, shrunk, far less moderate
B) shrunk, shrunk, far more moderate
C) grossed up, grossed up, far less moderate
D) grossed up, grossed up, far more moderate
E) none of the above