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Chapter 8: 1, When the annualized monthly percentage rates of return for a stock market index were regressed against the returns for ABC and XYZ

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Chapter 8: 1, When the annualized monthly percentage rates of return for a stock market index were regressed against the returns for ABC and XYZ stocks over the most recent 5-year period, using an ordinary least squares regression, the following results were obtained: Statistic ABC XYZ Alpha -3.20% 7.3 % Beta 0.60 0.97 R2 0.35 0.17 Residual standard deviation 13.02% 21.45% Explain what these regression results tell the analyst about risk-return relationships for each stock over the sample period

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