Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 5%, and the markets average return was 15%. 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	0.617	0.457
Residual standard deviation, (e)	11%	19.8%
Standard deviation of excess returns	22.3%	26.3%

Required:

a. Calculate the following statistics for each stock: (Do not round intermediate calculations. Round your answers to 4 decimal places.)

Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 5%, and the markets average return was 15%. 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	0.617	0.457
Residual standard deviation, (e)	11%	19.8%
Standard deviation of excess returns	22.3%	26.3%

Required:

a. Calculate the following statistics for each stock: (Do not round intermediate calculations. Round your answers to 4 decimal places.)

i. Alpha for stock A and stock B

ii. Information ratio for stock A and stock B

iii. Sharpe ratio for stock A and stock B

iv. Treynor measure for stock A and stock B