Calculations Flashcards
current yield (stock)
annual dividend / current market price
current yield (debt security)
annual interest / current market price
number of shares for conversion
par value / conversion price
parity
bond market value / number of shares
tax-free equivalent yield
corporate rate x (100% - tax bracket)
tax-equivalent yield
municipal rate / (100% - tax bracket)
NAV of mutual fund share
fund NAV / number of shares outstanding
dollar cost average
total dollars invested / number of shares purchased
average market price
share price total / number of investments
shareholders’ equity
assets - liabilities
total return
income (dividends or interest) + gain or loss / original investment
annualized return
(1 + cumulative return) 365 / days held
inflation-adjusted (real) return
total returns - consumer price index (CPI)
after-tax return
total return - marginal tax bracket
rule of 72
72 / known interest rate = # of years to double investment;
72 / known number of years = interest rate required to double investment
arithmetic mean
simple average of the numbers
median
the number in the middle
mode
the number appearing most frequently
range
the difference between the highest and lowest numbers
alpha (RF not given)
actual return - (beta x market return)
alpha (RF given)
(actual return - RF) - (beta x [market return - RF])
sharpe ratio
actual return - RF / standard deviation
