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33 Cards in this Set

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  • Back

effective annual rate

(1 + i/m)^m - 1

future value

PV * (1+r)^n

PV

FV / (1+r)^n

PV annuity due

PV ordinary * (1+r)

FV annuity due

FV ordinary * (1+r)

PV perpetuity

periodic payment / periodic interest rate

NPV

CF1/(1+r) + ... CFN/(1+r)^n - initial investment

bond equivalent yield

2*semiannual yield

bank discount yield

% discount face * 360/days

HPY

(P1+D1) / P0 - 1

EAY

(1+HPY)^360/t - 1

EAR

(1+r)^n - 1

money market yield

HPY * 360/t

geometric mean return

((1+R1)+...(1+Rn))^1/n - 1

weighted mean

sum of WiXi

CV

st dev / mean

sharpe ratio

(Rp - RFR) / stdev

correlation

Cov/(stdev1*stdev2)

Variance of a two stock portfolio

W1^2*stdev1^2 + W2^2*stdev2^2 - 2W1W2Cov

z score

(observation - population mean) / stdev

confidence interval

mean +/- z score * (stdev / n^1/2)

continuously compounded return

ln (end/beginning)

holding period return

end/beginning - 1

holding period return from CCR

e^CCR - 1

sampling error of sample mean

sample mean - portfolio mean

normal distribution with known variance and less than 30 observations

z stat

normal distribution with known variance and more than 30 observations

z stat

normal distribution with unknown variance and less than 30 observations

t stat

normal distribution with unknown variance and more than 30 observations

t stat

nonnormal distribution with known variance and less than 30 observations

N/A

nonnormal distribution with known variance and more than 30 observations

z stat

nonnormal distribution with unknown variance and less than 30 observations

N/A

nonnormal distribution with unknown variance and more than 30 observations

t stat