Bodie Marcus INVESTMENTS Fourth Edition curiO Characteristic li Excess Returns(i SCL Excess returns on market index R:=a: +BR +e Irwvin/McGrazo-Hill 10-5 The McGraw-Hill Companies, Inc, 1999Irwin/McGraw-Hill 10-5 © The McGraw-Hill Companies, Inc., 1999 INVESTMENTS Fourth Edition Bodie Kane Marcus Security Characteristic Line Security Characteristic Line Excess Returns (i) SCL . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Excess returns on market index Ri = α i + ßiRm + ei