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