onsider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 8%, and the markets average return was 12%. 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	0.653	0.475
Residual standard deviation, (e)	11.6%	20.4%
Standard deviation of excess returns	22.9%	27.5%

a. Calculate the following statistics for each stock (use whole percent values, 1%, not 0.01 for example, for your calculations): (Round your answers to 4 decimal places.)

alpha =

information ratio =

Sharpe ratio =

Treynor measure =