Calculations

Question 1

Current Yield (Stock)

Answer 1

Annual Yield/Current Market Price

Question 2

Current Yield (Debt Security)

Answer 2

Annual Yield/Current Market Price

Question 3

Number of shares for conversion

Answer 3

Par Value/Conversion Price

Question 4

Parity

Answer 4

Bond Market Value/Number of Shares

Question 5

Tax-Free Equivalent Yield

Answer 5

Corporate Rate x (100% - Tax Bracket)

Question 6

Tax-Equivalent Yield

Answer 6

Municipal Rate/(100% - Tax Braket)

Question 7

NAV of a Mutual Fund Share

Answer 7

Fund NAV/Number of Shares Outstanding

Question 8

Dollar Cost Average

Answer 8

Total Dollars Invested/Number of Shares Purchased

Question 9

Average Market Price

Answer 9

Shore Price Total/Number of Investments

Question 10

Shareholders Equity

Answer 10

Assets - Liabilities

Question 11

Total Return

Answer 11

Income (Dividend or interest) + Gain or Loss/Original Investment

Question 12

Annualized Return

Answer 12

Total Return on an Annualized Return

Question 13

Inflation-Adjusted (Real) Return

Answer 13

Total Return - CPI

Question 14

After-Tax Return

Answer 14

Total Return - Marginal Tax Bracket

Question 15

Alpha (RF not given)

Answer 15

Actual Return - (Beta x Market Return)

Question 16

Alpha (RF given)

Answer 16

(Actual Return - RF) - ( Beta x [Market Return - RF])

Question 17

Sharpe Ratio

Answer 17

Actual Return - RF/Standard Deviation