2. Consider the two (excess return) index-model regression results for stock A and B. The risk- free rate over the period was 6% and the market average return was 14%. Performance is measured using an index-model regression in excess returns. Index model regression estimates Rsquare Residual standard deviation (o(e)) Standard deviation of excess returns Stock A 1%+1 .2(TM-rr) 0.576 10.3% 21.6% Stock B 2%+0.8(TM-rr) 0.436 19.1% 24.9% (a) Calculate the following statistics for each stock: (1) Alpha. (2) Information ratio. (3) Sharp ratio (4) Treynor measure. (b) Which stock is the best choice is this the only risky asset to be held by the investor? (c) Which stock is the best choice if the stock is mixed with the investors portfolio, currently composed solely of the holdings in the market index fund? (d) Which stock is the best choice if this stock is one of the many stocks that the investor is analyzing to form an actively managed stock portfolio