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Consider the two (excess return) Index-model regression results for stocks A and B. The risk-free rate over the perlod was 5%, and the market's average
Consider the two (excess return) Index-model regression results for stocks A and B. The risk-free rate over the perlod was 5%, and the market's average return was 12%. Performance is measured using an Index model regression on excess returns. Required: a. Calculate the following statlstics for each stock. (Do not round intermedlate calculatlons. Round your answers to 4 decimal places.) b. Which stock is the best cholce under the following circumstances
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