"The Relationship between Risk and Return is Conditional upon the Signof the Excess Market Return. 1 The Relationship between Risk and Return is Conditional upon the Sign of the Excess Market Return Executive Summary This Report? A list of the basic definitions of Risk (as measured by Beta), Expected andMarket return. It’s a significant aspect to meet the requirements of everyinvestor.? Brief about the expediency of recent empirical studies discuss the importance ofincluding the sign of the excess market return when examining the beta-returnrelationship.2 The Relationship between Risk and Return is Conditional upon the Sign of the Excess Market ReturnContentsIntroduction ................................................................................................................................................... 4Empirical studies including the sign of the excess market return when examining the beta-returnrelationship. ................................................................................................................................................... 7Pettengill, Sundaram and Mathur (1995) ................................................................................................. 9Methodology ............................................................................................................................................... 13Conclusion ................................................................................................................................................... 16References ................................................................................................................................................... 17 3 "