Formula

Question 1

Interest Yield

Answer 1

Coupon / Current Cost X 100

Question 2

Earnings Per Share

Answer 2

Net Earnings / Number of ordinary shares

Question 3

Dividend Yield

Answer 3

Dividend / Current Share Price X 100

Question 4

Price Earnings Ratio

Answer 4

Todays Share Price / Earnings Per Share

Question 5

Net Asset Value

Answer 5

Net Assets / Number of Ordinary Shares

Question 6

Gross Property Yield

Answer 6

Gross Rent less expenses / Property Value x 100

Question 7

CAPM

Answer 7

E(Ri) = Rf + ßi x (Rm - Rf)

Question 8

Sharpe Ratio

Answer 8

(Investment Return - Risk free return) / Standard Deviation of return

Higher is better

Question 9

Alpha

Answer 9

Portfolio Return - (Rf + ßi (Rm - Rf))

Question 10

Information Ratio

Answer 10

Rp - Rb / tracking error

Question 11

Compound Interest (in arrears)

Answer 11

PV x (1+r)^n

Question 12

Compound Interest (in advance)

Answer 12

PV x (1+r)^n+1

Question 13

Effective Annual Interest Rate

APR / AER / EAR

Answer 13

(1 + r/n)^n -1 x 100

Question 14

Present Value

Answer 14

FV / (1+r)^n

Question 15

Real Return

Answer 15

[(1 + Rnom) / (1 + Rinf)] - 1

Question 16

Money Weighted Return

Answer 16

D + V1 - Vo / Vo

Question 17

Time Weighted Return

Answer 17

V1/Vo x V2/(V1 + C) -1

Question 18

Redemption Yield

Answer 18

Interest Yield + or - [gain or loss to maturity / number of year to maturity] / clean price X 100