Which of the following companies generated the best risk adjusted return? Why?

Stock 1:

Total Return: 18.36-17.27+0.95=$2.04

$2.04/17.27=11.8%

Expected Return: 1.1*.06^+.025=9.1

Alpha: 2.7%

Stock 2:

Total Return: 81.04-72.95+1.25=$9.34

$9.34/72.95=12.8%

Expected Return: 1.5*.06+.025=11.5%

Alpha: 1.3%

Stock 3:

Total Return: 111.58-105.23+2=$8.35

$8.35/105.23=7.9%

Expected Return: 0.8*.06+.025=7.3%

Alpha: 0.6%