Consider the two $($excess return$)$ index$-$model regression results for stocks A and $B.$ The risk$-$free rate over the period was $8\%,$ and the

market's average return was $14\%.$ Performance is measured using an index model regression on excess returns.

Required:

a$.$ Calculate the following statistics for each stock:

b$.$ Which stock is the best choice under the following circumstances?

Complete this question by entering your answers in the tabs below.

Calculate the following statistics for each stock:

Note: Round your answers to $4$ decimal places.