1. Data collection: A. Stock Prices and Stock Market Index: Use a data source of your choice to collect daily data on a chosen stock and broad market index . B. Risk-free rate: daily rates of return on the 3-month T-bill rate are from the St. Louis Fed’s websit 2. Compute the daily (holding period) rate of return on your chosen stock in percent using the adjusted closing price for the day. Alternatively, use the formula for HPR: (closing pricet+1 + dividend disbursements t+1 – closing pricet)/ closing pricet. 3 . Find the excess return on your stock and the excess return on the market index. 4. Was there a positive or negative earnings surprise on announcement date? For my example, Apple’s first quarter earnings announced on Jan. 23, 2013 was perceived by investors as a negative surprise1 .