Using the information in the table

1.Calculate information ratio. Assume that the idiosyncraticrisk for stock A is 8.25 percent.

2.Calculate Sharpe ratio for the stock A.

3.Calculate Sharpe ratio for the market.

4.Calculate Treynor ratios for both the market and A and submityour answer for stock A

5.Calculate Jensen’s measure of alpha for stock A.

6.Calculate M-square

Average return Beta Standard deviation 1.15 30% Stock A Market 14.5% 11.8% 1 20% Treasury Bills 4.8% 0 0