4.18 points] The figures below show plots of monthly excess returns for two stocks plotted against excess returns for a market index. Le Returns Stock Burneik A RAH The following regression outputs are provided for Stock A and Stock B. respectively, based on the regression model: XR = a[+ B XRx + ej, where XR stands for the excess retum, i stands for any security i, and M stands for a broad market index with ox=1%. Stock -0.05 B 0.02 B 1.2 0.9 20% 2% (1) Which stock is a defensive stock, and why? (2 points) (2) Which stock is riskier to a well-diversified investor and why? (2 points) (3) Calculate the total risk of stock A as measured by its variance of returns (2 points) (4) What is the Treynor ratio of the investment in Stock B when XRM is 3%? (2 points)