Note: Requesting you professor give your own answer, Don't use AI tool like chatgpt or others. Also don't use internet sources answer.

Stock Selection Assignment CLO 1, CLO 2, CLO 3, CLO 4, CLO 5

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 markets average return was 14%.

1. Calculate the following statistics for each stock:
   1. Alpha
   2. Information ratio
   3. Sharpe ratio
   4. Treynors measure
2. Which stock is the best choice under the following circumstances? This is the only risky asset to be held by the investor.
   1. This is the only risky asset to be held by the investor.
   2. This stock will be mixed with the rest of the investors portfolio, currently composed solely of holdings in the market-index fund.
   3. This is one of many stocks that the investor is analyzing to form an actively managed stock portfolio

9. 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