Learning Goal: I’m working on a finance project and need an explanation and answ

Learning Goal: I’m working on a finance project and need an explanation and answer to help me learn.Name of the company- Target CorporationTicker Symbol- TGTDividends/share- annual dividend ($3.6) dividend yield (1.45%)Beta- 1.03 (5Y Monthly)Forward P/ E Ratio- 18.151. 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 return2. Describe your risk for your stock. i. Look up the S&P 500 (market proxy) standard deviation ii. Compare your stock’s risk (std deviation) to the overall market (S&P 500 risk). Is your stock more or less risky than the overall market?3. Using your stock’s average return (calculated in part 2) as the compounding rate, use TVM to determine how long it will take your stock to double in value. Use your stock’s current market value as your PV and make sure your FV is double that amount. Solve for the number of years/periods (N). 4. Calculate your required (expected) return using the CAPM (SML) formula. Use the following information in parts a.-c. to find the data needed for your CAPM formula inputs. (Chp. 4) a. Use the beta from part 1.a.iv. above. b. Use the S&P 500 Index to determine the current annual market return. You may need to calculate this return (holding period, Chp. 3) over the prior 12 months. You can find the S&P 500 index price data at the two web sites listed above.Current yield on ten-year U.S. Treasury securities finding the risk-free rate- 1.64%5. Determine the value of your stock. (Chp. 11) a. Use the required return you calculated in part 4 for the valuation, if applicable.b. If a dividend is paid, determine if it is fixed or growing annually. i. If it is growing (changing each year), determine the growth rate. The average growth rate for the previous four years is acceptable. It is possible to have negative growth if the dividend is decreasing. c. Use the Dividend Discount model, Constant Growth Dividend model, or the P/E Multiplier model (if no dividends are paid) for valuation. You should use a dividend growth model if a dividend is paid. d. Compare your stock’s value to the current market price; is the stock currently overvalued or undervalued in the market? 6. Assume you purchased $1000 worth of this stock at the start of the last 12 months (one year ago) and sold it at the end of the 12thmonth (today). Purchases of partial shares are allowed. a. Determine your dollar return and percentage return on your investment (do not forget to include any income/dividends earned on the investment in your calculation). You will first need to determine how many shares you were able to purchase with your $1,000 investment 12 months ago (based on the price then), and then determine the value of those of shares based on today’s price. b. Look up the current inflation rate and calculate your real rate of return (inflation adjusted rate). http://www.usinflationcalculator.com/inflation/current-inflation-rates/. 7. Based on the information you have provided in numbers 1-6 above; provide a brief analysis of the risk of investing in the stock you have chosen. a. Consider the stock standard deviation and beta as well as the market standard deviation. b. Would you be willing to invest your money? Why or why not? c. Include a discussion of the risk of this one stock compared to the risk of the market.