0.65 5.41 7.24 February 2.86 1.51 0.58 3.44 0.93 March 8.18 0.23 0.62 8.79 0.38 April 7.36 0.29 0.72 8.08 1.01 May 7.76 5.58 0.66 7.10 4.92 June 0.52 1.73 0.55 0.03 1.18 July 1.74 0.21 0.62 2.36 0.83 August 3.00 0.36 0.55 3.55 0.91 September 0.56 3.58 0.60 1.16 4.18 October 0.37 4.62 0.65 1.02 3.97 November 6.93 6.85 0.61 6.32 6.25 December 3.08 4.55 0.65 2.43 3.90   Mean 0.02 2.38 0.62 0.60 1.75 Standard deviation 4.97 3.33 0.05 4.97 3.32 Regression results rGM r f (rM r f )   Estimated coefficient 2.590 1.1357 Standard error of estimate (1.547) (0.309) Variance of residuals 12.601 Standard deviation of residuals 3.550 R 2 .575     data appear in Table 10.1.) The SCL is a plot of the typical excess return on a security as a function of the excess return on the market. This sample of holding period returns is, of course, too small to yield reliable statistics. We use it only for demonstration. For this sample period we find that the beta coefficient of GM stock, as estimated by the slope of the regression line, is 1.1357, and that the inter- cept for this SCL is 2.59% per month. For each month, t, our estimate of the residual, et, which is the deviation of GMs excess return from the prediction of the SCL, equals