Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 7%, and the markets average return was 14%. Performance is measured using an index model regression on excess returns.

Stock A Stock B

Index model regression estimates 1% + 1.2(r_M r_f) 2% + 0.8(r_M r_f)

R-square 0.635 0.466

Residual standard deviation, (e) 11.3% 20.1%

Standard deviation of excess returns 22.6% 26.9%

a. Calculate the following statistics for each stock: (Round your answers to 4 decimal places.)

		Stock A		Stock B
i.	Alpha		%		%
ii.	Information ratio
iii.	Sharpe ratio
iv.	Treynor measure