1. 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 markets average return was 13%. Performance is measured using an index model regression on excess returns. Assume alpha for stock A and stock B is 1% and 2% respectively

	Stock A	Stock B
Index model regression estimates	1% + 1.2(rM rf)	2% + 0.8(rM rf)
R-square	0.588	0.442
Residual standard deviation, (e)	10.5%	19.3%
Standard deviation of excess returns	21.8%	25.3%

Calculate the following statistics for each stock (use whole percent values, 1%, not 0.01 for example, for your calculations):

1. Information Ratio

2. Sharpe Ratio

3. Treynor Measure