Question: need some help Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It dom
Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It dom Index nodel regression estimates R-square Residual standard deviation, (e) Standard deviation of excess returns Stock A 1% + 1.27 - 1) 0.653 11.6% 22.9% Stock B 2% + 8.8(TH-F 0.475 20.4% 27.5% a. Calculate the following statistics for each stock: (Round your answers to 4 decimal places.) Answer is complete but not entirely correct. Stock A Stock B Alpha 1.0000 % 2.0000 Information ratio 0.0862 0.0980 Sharpe ratio 0 2533 0.1891 Treynor measure 0.0483 0.0065 IL iv b. Which stock is the best choice under the following circumstances? Answer is complete and correct. Stock A This is the only risky asset to be held by the investor This stock wil be mixed with the rest of the investor's portfolio, currently composed solely of holdings in the market index fund This is one of many socks that the investor is analyzing to form an actively managed stock portfolio Stock B Stock B
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