Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 8%, and the markets average return was 13%. Performance is measured using an index model regression on excess returns.

Index model regression estimates

1% + 1.2(rM rf)

2% + 0.8(rM rf)

R-square	0.659	0.478
Residual standard deviation, (e)	11.7%	20.5%
Standard deviation of excess returns	23%	27.7%

a. Calculate the following statistics for each stock:

Stock A Stock B

i.Alpha%%' ___________ _________

ii.Information ratio ___________ _________

iii.Sharpe ratio 0.3043 0.2166

iv.Treynor measure 5.8300% 7.5000%