FIN 302 - Quiz 1 Flashcards
Returns that have been calculated using compounding can be calculated using the average return. An example formula is:
{=AVERAGE(LN(B4:B13/B3:B12))}
Remember, you have to stager the ranges - see above
For calculate present value, provide an example of the formula you would use.
=SUM(1/((1+B3:B7)^(A3:A7))}
To calculate the compound return the formula is [[π (1+r)^(1/n)]-1]. In Excel you can enter the formula as:
{=PRODUCT(1+B3:B12)^(1/10)-1}
How can you calculate the frequency of a array of data?
To do frequency distribution, you first must provide a bin. This means the number of occurrences between one number and the next.
{=FREQUENCY(A2:A15, C3:C13)}
Provide an example of the formula you would use to Transpose an array of data?
{=TRANSPOSE(A2:B4)}
With arrays do you need to worry about anchoring the data?
With arrays you DO NOT have to worry about anchoring ($).
What is the difference between line and XY scatter charts?
Line charts use equal spacing for the x-axis legend, whereas XY charts space the x-axis legend depending on the distance between the points.
How can you mark data series with the proper name?
By including the column headings, that will mark the series of data in a chart with the proper name.
What does the SUMPRODUCT formula do?
The SUMPRODUCT function provides you the product of the sum of numbers provided.
What is an example of the VLOOKUP function?
=VLOOKUP(K4,$N$4:$O$12,2).
Note: you must have your data being referenced in ascending order.
What are 4 items that go into the formula for a SERIES?
a. Name (would need to be in quotes or referenced to a cell) this is the title of the graph - optional
b. X axis - optional
c. Y Variable - required
d. Order - required
In order to use the SUMIF function, how must the criteria be categorized?
With SUMIF, the criteria MUST be in quotes.
How can you see what the results of a part in a formula will be?
By highlighting a section in a formula you can click F9 and see what the return in that part of the formula would be.
