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Which stock is the best choice if it will be mixed with the rest of the investors portfolio, currently composed solely of holdings in the
 Which stock is the best choice if it will be mixed with the rest of the investor’s portfolio, currently composed solely of holdings in the market-index fund?
Consider the following expectations for four stocks that could be added to your portfolio. Alpha Beta R-Square Tracking error Standard Deviation Information Ratio Sharpe Treynor Stock A 1.00% 1.2 0.665 11.8 23.1 0.085 0.355 6.833 Stock B 2.00% 0.8 0.481 20.6 27.9 0.097 0.244 8.500 Stock C 1.50% 1.1 0.3967 14.2 25.7 0.106 0.315 7.364 Stock D 2.25% 0.95 0.5862 16.4 24.16 0.137 0.329 8.368
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