Excess Returns (0) SCL Intercept Excess returns on market index e R; = Q ; + B.Rm + e As we add stocks to the portfolio, which term tends to get smaller (based on the graph above)? Ri Rm Bi Excess returns Intercept ei Slope of the line Excess Returns (0) SCL Intercept Excess returns on market index e R; = Q ; + B.Rm + e As we add stocks to the portfolio, which term tends to get smaller (based on the graph above)? Ri Rm Bi Excess returns Intercept ei Slope of the line