Fast Forward Academy missed concepts Flashcards
1
Q
What is the Sharpe measurement formula?
A
(Portfolio return - Risk-Free rate)/Standard Deviation
2
Q
What is the Treynor index for portfolio performance formula?
A
(Portfolio return - Rish-free rate)/Beta
3
Q
What is the Jensen measure of performance portfolio formula?
A
Risk-free rate + ((Return on market index - Risk-free rate) X Beta)
4
Q
Formula to convert actual dollars to real dollars.
A
Real $ = Actual $/(1+F)n(superscript)
n = number of periods; F = inflation rate
5
Q
Formula for calculating effective interest rate for a loan with a compensating balance
A
Annual interest expense / (full loan amount - compensating balance
