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.

	Stock A	Stock B
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:

i) Sharpe ratio

ii) Treynor Measure