Formula

Question 1

After tax return & MTR

Answer 1

After tax return /(1-MTR)= before tax return

Question 2

Return on a portfolio

Answer 2

Return= beta x current market return

Question 3

Market line formula

Answer 3

E(Rp)=Rf + beta p( Rm - Rf)

Question 4

Alpha/jensen index formula

Answer 4

Jensen index= portfolio return- expected return

= Rp - [Rf + beta(Rm- Rf)]
Rm is market return
Rf is risk free return

Question 5

Treynor index

Answer 5

Tp = Rp - Rf/ ( beta)

Question 6

Sharp Index

Answer 6

Sp = Rp- Rf / (std dev)

Question 7

CPP

Answer 7

CPP= avg 5yrs YMPE / 12 x 25%

Question 8

CPP disability

Answer 8

CPP disability = flat rate+ 75% or retirement pension

Question 9

Probate fee

Answer 9

1.5% for in excess of 50k

Question 10

NCPI( Net Cost of Pure insurance )

Answer 10

NCPI= pure risk x mortality rate

Question 11

Taxable policy gain

Answer 11

Before 1982
Policy gain= proceeds of disposition - ACB

after 1982

Policy gain= proceeds of disposition - ( ACB- NCPI)

Question 12

Real rate of return= (annual return-inflation)/(1+ inflation)

Question 13

RRIF min withdrawal

Answer 13

Total funds /(90- age)

Question 14

FMV of T Bill at specified yield and time

Answer 14

= par value / (1+ ( quoted yield x (term/365))

Question 15

Coefficient of variation

Answer 15

= standard deviation/ mean