Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 4%, and the market's average return was 12%. Performance is measured using an index model regression on excess returns. Index model regression estimates R-square Residual standard deviation, a(e) Standard deviation of excess returns Alpha Information ratio Sharpe ratio iv Treynor measure Stock A Stock A Stock B 1% 1.2(Mr) 2% + 0.8(rm-re) Required: a. Calculate the following statistics for each stock: (Do not round intermediate calculations. Round your answers to 4 decimal places.) % 0.689 12.2% 23.5% Stock B 0.493 21% 28.7% %

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