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Information about stocks A and B are given below. Stock Average Standard Beta Return Deviation 14% 20% 1.3 Y 12% 22% 0.9 Market (M) 10%

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Information about stocks A and B are given below. Stock Average Standard Beta Return Deviation 14% 20% 1.3 Y 12% 22% 0.9 Market (M) 10% Risk- free 2% rate a. Calculate the following statistics for each stock: i) Sharpe Ratio; and ii) Treynor Measure b. Which stock is the best choice if this is one of many stocks that the investor is analyzing to form an actively managed stock portfolio

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