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 market's average return was 12%. Performance is measured using an index model regression on excess returns Index model regression estimates R-square Residual standard deviation, ale) Standard deviation of excess returns Stock A 18 + 1.2- PF) 0.653 11.6% Stock 8 28 + 8.8( e. 475 20.45 22.9% 27.5% a. Calculate the following statistics for each stock (Round your answers to 4 decimal places.) Stock A Stock B % 9 Alpha i Information ratio Sharpe ratio Traynor measure 3 b. Which stock is the best choice under the following circumstances? This is the only risk asset to be held by the investor This block will be mixed with the rest of the investor's portfolio, currently composed solely of holdings in the marketindex fund This is one of many stocks that the investor is analyzing to form an actively managed shock portfolio Consider the following information regarding the performance of a money manager in a recent month. The table represents the actual return of each sector of the manager's portfolio in column 1 the fraction of the portfolio allocated to each sector in column 2, the benchmark or neutral sector allocations in column 3, and the returns of sector indices in column 4. Equity Bonds Cash Actual Return 2.6% 1.5 0.7 Actual Weight 0.4 0.2 0.4 Benchmark Weight 8.6 8.1 0.3 Index Return 3.1% (S&P 500) 1.7 (Barclay's Aggregate) 8.8 a-1. What was the manager's return in the month? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.) The manager's return in the month is 3-2. What was her overperformance or underperformance? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.)