Consider the two (excess return) index-model regression results for stocks a and b. the riskfree rate over the period was 7%, and the market’s average return was 12%. performance is measured using an index model regression on excess returns. stock a stock b index model regression estimates 1% + 1.2(rm – rf) 2% + .8(rm – rf) r-square 0.623 0.46 residual standard deviation, σ(e) 11.1% 19.9% standard deviation of excess returns 22.4% 26.5%a. calculate the following statistics for each stock: (round your answer to 4 decimal places. omit the "%" sign in your response.)stock a stock b i. alpha % % ii. information ratio iii. sharpe measure iv. treynor measure b. which stock is the best choice under the following circumstances? i. this is the only risky asset to be held by the investor. (click to select)stock astock b ii. this stock will be mixed with the rest of the investor’s portfolio, currently composed solely of holdings in the market-index fund.(click to select)stock bstock a iii. this is one of many stocks that the investor is analyzing to form an actively managed stock portfolio.(click to select)stock bstock a