Consider the two $($excess return$)$ index$-$model regression results for stocks A and $B.$ The risk$-$free rate over the period was $6\%,$ and the

market's aweroge return was $15\%.$ Performance is measured using an index model regressicn on excess returns.

Required:

e$.$ Calculete the following stetistics for each stock: $($Do not round intermediete celculetions. Round your answers to $4$ decimal

pleces.$)$

b$.$ Which stock is the best choice under the following circumstances?

This is the conty risky asset to be held by the investor

iv$.$ This is one of many slocks that the iswestor is analyzing to form an actively managed slock portfolio.