You are a junior portfolio manager at Summit Ridge Investmen…
You are a junior portfolio manager at Summit Ridge Investments, tasked with evaluating the performance of SkyLens Networks, a high-growth telecom firm, compared with the Global Technology Index. Your research associates have provided six years of historical annual returns for both SkyLens Networks and the Global Technology Index, as shown in the table below. Year SkyLens Networks Global Technology Index 2018 17.5% 12.0% 2019 22.3% 14.4% 2020 −7.8% −5.0% 2021 28.1% 23.3% 2022 11.7% 9.9% 2023 3.6% 2.7% Using your Texas Instruments BA II Plus calculator and the table above, estimate the alpha and the beta (β) of SkyLens Networks relative to the Global Technology Index (market).alpha =% and beta=.
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