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. Index model regression estimates R-square Residual standard deviation, o(e) Standard deviation of excess returns Stock A 1% + 1.2M - A) 0.576 10.3% 21.6% Stock B 2% + 0.8mm -rf) 0.436 19.1% 24.9% Required: a. Calculate the following statistics for each stock: (Do not round intermediate calculations. Round your answers to 4 decimal places.) i.Alpha ii. Information ratio iii. Sharpe ratio iv. Treynor measure Stock A 1.0000% 0.0971 0.4907 8.8333 Stock B 2.0000 % 0.1047 0.3373 10.5000 b. Which stock is the best choice under the following circumstances? i. This is the only risky asset to be held by the investor. Stock A ii. This stock will be mixed with the rest of the investor's portfolio, currently composed solely of holdings in the market- Stock B index fund. ii. This is one of many stocks that the investor is analyzing to form an actively managed stock portfolio Stock B