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 markets average return was 16%. Performance is measured using an index model regression on excess returns. Stock A Stock B Index model regression estimates 1% + 1.2(rM rf) 2% + 0.8(rM rf) R-square 0.647 0.472 Residual standard deviation, (e) 11.5% 20.3% Standard deviation of excess returns 22.8% 27.3%

a. Calculate the following statistics for each stock: (Round your answers to 4 decimal places.)

		Stock A		Stock B
i.	Alpha	1.0000	%	2.0000	%
ii.	Information ratio	0.0870		0.0985
iii.	Sharpe ratio	51.7544		33.6996
iv.	Treynor measure	8.8333	%	10.5000	%