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Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 6%, 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 period was 6%, and the market's average return was 14%. Performance is measured using an index model regression on excess returns. a. Calculate the following statistics for each stock: i. Alpha ii. Information ratio iii. Sharpe ratio iv. Treynor measure
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