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In addition to coming up with the target price, you also want to know how your stock has performed from the time we purchased it up to today. Performance should be measured as 1) the total return of the stock, 2) the active return compared to sector, and 3) the active return compared to the S&P. Additionally, you want to calculate an expected return based on your target price. Information for the purchase date and sector classification of your stocks in posted on the class website.Just as a review, the formula for the total holding period return for a stock is HPR=PE-PB+DivPBPlease use the above formula to calculate the different HPRs for your stock, the sector, and the S&P. You can get stock price and dividend information from Yahoo Finance. You can assume that we bought your stock at the close price on the purchase date. Historical return calculationsSpecifically, please calculate the following:The total return for my stock from purchase date to November 6, 2015 is _____________. (Note that Nov. 6 is just a reference (it will be the most current date for the first draft), but you should have this re-calculated for the last IAC meeting.)The sector total return for the same period is ______________.The S&P total return for the same period is ______________.The active return is what your stock earned over and above some benchmark. Specifically, you can use the formula: Active return = Stock total return – Benchmark total return.The active return versus the sector is ___________.The active return versus the S&P is ___________.Expected return calculationsYou can also rewrite the HPR equation asHPR=PE-PBPB+DivPBOr, in other words,HPR=capital gains yield+dividend yieldMy target price is for the following date _______________. The expected capital gains yield for my stock (based on my target price) is __________. This translates to an annualized yield of ____________.The dividend yield as of (date) ______________ from Yahoo Finance is __________.The expected total return for my stock is ___________.The beta from Yahoo Finance for my stock is ___________. ................
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