consider the two (excess retrun) index model regression results from stocks A and B. The risk free rate over the period was 6% and the market's averge return was 14%. Performance is measured using an index model regression on excess return:

Stock A

inxel model regression equation: 1% + 1.2(rM-rf)

R-square: 0.576

residual standard deviation: 10.3%

standard deviation of excess returns: 21.6%

Stock B

inxel model regression equation: 2% + 0.8(rM-rf)

R-square: 0.436

residual standard deviation: 19.1%

standard deviation of excess returns: 24.9%

How do i calculate:

1) Alpha:

2) Information ratio:

3) Sharpe measure:

4) Treynor measure:

Can someone just show me how you determine the answers by showing me the full workings so i can sit down and properly understand it.

I have this information from the solution guide but i have no idea how to use it:

*To compute the Sharpe measure, note that for each stock, (rP – rf ) can be computed from the right-hand side of the regression equation, using the assumed parameters rM = 14% and rf = 6%. The standard deviation of each stock’s returns is given in the problem.

** The beta to use for the Treynor measure is the slope coefficient of the regression equation presented in the problem.