Beta of a risky financial security is believed to be a measure of systematic risk of this security. Estimate beta of equity of company called Genetech (ticker symbol DNA) using monthly returns for period between January 2002 and December 2006. Refer to lecture note "Estimating CAPM". Download data from Yahoo! Finance. For market portfolio returns use returns on SP 500 Index (SPX), for risk-free rate use 3-month T-Bill rate (IRX)

a)Estimate beta using full data on market excess returns and excess returns on Genetech.

b)Plot data and examine it for outliers. Would it be justifiable to eliminate them? Explain (you may have to search internet for news concerning the company). How would beta change if you eliminate those outliers?