39. The figure below shows plots of monthly excess returns for two stock portfolios 1 & 2 plotted against excess returns for a market index. Compare the alpha, beta and idiosyncratic risk of the two portfolios. (15 points) Portfolios 1 & 2 Regressed on the Market Port 1 Port 2 8 Linear (Port 1) Linear (Port 2) -8 6 39. The figure below shows plots of monthly excess returns for two stock portfolios 1 & 2 plotted against excess returns for a market index. Compare the alpha, beta and idiosyncratic risk of the two portfolios. (15 points) Portfolios 1 & 2 Regressed on the Market Port 1 Port 2 8 Linear (Port 1) Linear (Port 2) -8 6