Question
Name of the company- Target Corporation Ticker Symbol- TGT Dividends/share- annual dividend ($3.6) dividend yield (1.45%) Beta- 1.03 (5Y Monthly) Forward P/ E Ratio- 18.15
Name of the company- Target Corporation
Ticker Symbol- TGT
Dividends/share- annual dividend ($3.6) dividend yield (1.45%)
Beta- 1.03 (5Y Monthly)
Forward P/ E Ratio- 18.15
a. Calculate the standard deviation for your stock to measure total risk for the company.
i. Use a sample size of 5 years. You will first need to look up or calculate the returns on this stock for the last five years and find the average annual return.
ii. If you need to calculate the returns, use the holding period return formula for each year and be sure to include any dividends paid each year. Determine the average return.
iii. Use the average return and annual returns to calculate the standard deviation for your stock. b. Describe your risk for your stock.
i. Look up the S&P 500 (market proxy) standard deviation ii. Compare your stocks risk (std deviation) to the overall market (S&P 500 risk). Is your stock more or less risky than the overall market?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started