Consider the two (excess return) index-model regression results for stocks A and The risk-free rate over the period was 4%, and the market's average return was 12%. Performance is measured using an index model regression on excess returns. stock A + 1.2(ry- 0.689 12.2% 23.5% Stock B 2% + 0.8(EN-rf) 0.493 219 Index model regression estimates R-square Residual standard deviation, o(e) standard deviation of excess returns 1% rf) 28-7 a. Calculate the following statistics for each stock: (Round your answers to 4 decimal places) Stock B Stock A i. Alpha i. Information ratio ili. Sharpe ratio v. Treynor measure b. Which stock is the best choice under the following circumstances? i. This is the only risky asset to be held by the investor This stock will be mixed with the rest of the investor's portfolio, curently composed solely of holdings in the ili. This is one of many stocks that the investor is analyzing to form an actively managed stock portfollo. market-index fund