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We are measuring the performance of stocks A and B, using an index model regression on excess returns. The risk-free rate is 5%, and the market's average return and standard deviation is 14% and 20% respectively. The regression results are in the following table. (Round intermediate calculations to 4 decimal places. Round your final answer to 2 decimal places, e.g. 3.47%) (Total 11 points) Regression estimates R-square Residual standard deviation Standard deviation Stock A 1% + 1.2 (rm-r?) 0.611 10.9% 22.2% Stock B 2% + 0.8M -r) 0.454 19.7% 26.1% a) Calculate Alpha, Information ratio, Sharpe ratio, Treynor measure, T2 and M2 for each stock. (8 points) b) Which stock is the best choice in each of the following investment plan, based on which measures? (3 points) 1. This is the only risky asset to be held by the investor. II. This stock will be mixed with the rest of the investor's portfolio, currently composed solely of holdings in the market-index fund. III. This is one of many stocks that the investor is analyzing to form an actively managed stock portfolio. We are measuring the performance of stocks A and B, using an index model regression on excess returns. The risk-free rate is 5%, and the market's average return and standard deviation is 14% and 20% respectively. The regression results are in the following table. (Round intermediate calculations to 4 decimal places. Round your final answer to 2 decimal places, e.g. 3.47%) (Total 11 points) Regression estimates R-square Residual standard deviation Standard deviation Stock A 1% + 1.2 (rm-r?) 0.611 10.9% 22.2% Stock B 2% + 0.8M -r) 0.454 19.7% 26.1% a) Calculate Alpha, Information ratio, Sharpe ratio, Treynor measure, T2 and M2 for each stock. (8 points) b) Which stock is the best choice in each of the following investment plan, based on which measures? (3 points) 1. This is the only risky asset to be held by the investor. II. This stock will be mixed with the rest of the investor's portfolio, currently composed solely of holdings in the market-index fund. III. This is one of many stocks that the investor is analyzing to form an actively managed stock portfolio