Question: 1. Consider the two (excess return) index-model regression results for stocks A and B. The risk- free rate over the period was 7%, and the

1. Consider the two (excess return) index-model regression results for stocks A and B. The risk- free rate over the period was 7%, and the market 's average retum was 15%. Performance is measured using an index model regression on excess returns. Stock / Stock B Index model regression estimates 0.01 +1 2(r- 0.02 +0.8(ru-7) R-square 0.641 0.469 Residual standard deviation, ore) 11.4% 20.2% Standard deviation of excess returns 22.7% 27.1% Calculate the following statistics for each stock: Jensen's Alpha il Sharpe ratio ili. Treyner ratio

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