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Consider the two ( exocess return ) index - model regression results for stocks A and B . The risk - free rate ower the

Consider the two (exocess return) index-model regression results for stocks A and B. The risk-free rate ower the period was 6%, and the
market's average return was 14%. Performance is measured using an index model regression on excess returns.
Required:
a. Calculate the following statistics, for each stock: (Do not round intermediate calculations. Round your answers to 4 decimal
pleces.)
b. Which stock is the best cholce under the following circumstances?
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