GulfBase Live Support
Leave a message and our representative will contact you soon
Section: 7 Specific Sector Return
Similar to market return, sector performance can be measured using the sector index or sector capitalization.
The following formula could be adopted to ascertain the sector return.
Specific sector return(%) = |
End of year sector index – Beginning of year sector index |
x 100 |
Beginning of year sector index |
||
+ |
||
Total dividend paid by sector the joint stock companies |
||
Current market capitalization of the sector |
||
Sector return can be used to compare individual stock performance of the same industry with the respective sector.