Problem 24.9 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 market's average return was 14%. Performance is measured using an index model regression on excess returns Stock A Stock B Index model regression estimates 1x +1.25 - 20.8(rx - rf) R-square 0.611 0.454 Residual standard deviation, o(e) 10.95 19.7% Standard deviation of excess returns 22.2% 26.1% a. Calculate the following statistics for each stock (Round your answers to 4 decimal places.) Stock A Stock B 96 Alpha Information ratio Sharpe ratio Treynor measure b. Which stock is the best choice under the following circumstances? This is the only to be held by the westor This will be more with the rest of the investors portfolio, curry composed solely of holdings in the This is one of my so that the versagte for an active managed stock portfolio