Run a regression of returns on your TARGET CORP stock against returns on a market index, preferably using monthly data and 5 years of observations (or) If you have access to Bloomberg, go into the beta calculation page and print off the page (after setting return intervals to monthly and using 5 years of data)

What is the intercept of the regression?

What does it tell you about the performance of this company's stock during the period of the regression?

What is the slope of the regression? o What does it tell you about the risk of the stock? o How precise is this estimate of risk? (Provide a range for the estimate.)

What portion of this firm's risk can be attributed to market factors?

What portion to firm-specific factors? Why is this important?

How much of the RISK for this firm is due to business factors?

How much of it is due to financial leverage?