Consider the two (excess return) one-factor-model regression results for stock A and B. The risk-free rate over the period 6%, and the market's average return was 14%.Performance is measured using a market-factor model regression on excess returns Which stock is the best choice under the following circumstances and why? -7 When this is the only risky asset to be held by the investor. a. From this strategy perspective, return to total risk dictates use of the Sharpe ratio. Therefore B, since it has the highest Sharpe ratio b. From this strategy perspective, return to total risk dictates use of the Treynor ratio. Therefore A, since it has the highest Sharpe ratio Which of these four funds had the largest total risk? Consider the two (excess return) one-factor-model regression results for stock A and B. The risk-free rate over the period 6%, and the market's average return was 14%.Performance is measured using a market-factor model regression on excess returns Which stock is the best choice under the following circumstances and why? -7 When this is the only risky asset to be held by the investor. a. From this strategy perspective, return to total risk dictates use of the Sharpe ratio. Therefore B, since it has the highest Sharpe ratio b. From this strategy perspective, return to total risk dictates use of the Treynor ratio. Therefore A, since it has the highest Sharpe ratio Which of these four funds had the largest total risk