a) Find the Jensens Alpha for each stock.

b) Find the Sharpe Ratio for each stock.

c) Find the Treynor Ratio for each stock.

4. [14 marks] Consider the single-index-model regression results for excess return of stock A and B, shown in table below. The risk-free rate is 5%, and the market index's average return was 10%. Stock A Regression Statistics R Square Standard Error (Residual SD) Standard deviation of excess returns 0.5231 10.30% 21.60% Intercept Market Risk Premium Coefficients Standard Error t Stat 1.50% 0.0053 0.61 P-value 2.8302 0.0050 1.9672 0.0503 1.2 Stock B Regression Statistics R Square Standard Error (Residual SD) Standard deviation of excess returns 0.2329 19.10% 24.90% Intercept Market Risk Premium Coefficients Standard Error t Stat 2.50% 0.0088 0.6 0.32 P-value 2.8409 0.0049 1.8750 0.0620 4. [14 marks] Consider the single-index-model regression results for excess return of stock A and B, shown in table below. The risk-free rate is 5%, and the market index's average return was 10%. Stock A Regression Statistics R Square Standard Error (Residual SD) Standard deviation of excess returns 0.5231 10.30% 21.60% Intercept Market Risk Premium Coefficients Standard Error t Stat 1.50% 0.0053 0.61 P-value 2.8302 0.0050 1.9672 0.0503 1.2 Stock B Regression Statistics R Square Standard Error (Residual SD) Standard deviation of excess returns 0.2329 19.10% 24.90% Intercept Market Risk Premium Coefficients Standard Error t Stat 2.50% 0.0088 0.6 0.32 P-value 2.8409 0.0049 1.8750 0.0620