Exercise 15 When the annualized monthly percentage rates of return for a stock market index were regressed against the returns for ABC and XYZ stocks over a 5-year period ending in 2008, using an ordinary least square regression, the following results were obtained: Alpha Beta \" Residual standard deviation 13.02% Explain what these regression results tell the analyst about risk-return relationships for each stock over the sample period. Comment on their implications for future risk-return relationship, assuming both stocks were included in a diversified common stock portfolio, especially in View ofthe following additional data obtained from two brokerage houses, which are based on 2 years of weekly data ending in December 2008: Brokerage House Beta of ABC Beta of XYZ B 0.71 1.25