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 market's average return was 14%. Performance is measured using an index model regression on excess returns.

Calculate: a. Jensens alpha.

b. Sharpe measure.

c. Treynor measure.

Index model regression estimates R-squared Residual standard deviation (oe) Standard deviation of excess returns Stock A 0.01 + 1.2(Rm-Rt) 0.576 10.3% 21.6% Stock B 0.02 +0.8(Rm-Rt) 0.436 19.1% 24.9%