Formula Flashcards

1
Q

Real Price (current yr)

A

Nominal Price current yr x (CPI base yr/ CPI current yr)

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2
Q

E (elasticity)

A

% change Q / % change P

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3
Q

Ex (cross-elasticity)

A

% change Qa / % change Pb

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4
Q

Pass-through

A

Es / (Es-Ed)

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5
Q

Labour Force (LF)

A

UE + E

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6
Q

Unemployment Rate (UR)

A

UE / LF

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7
Q

Participation Rate

A

LF / WAP

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8
Q

Income Effect

A

Change H / Change I

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9
Q

Substitution Effect

A

Change H / Change W

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10
Q
ERp
ERa
RF
op
oa
A
ERp : expected return on portfolio
ERa : expected return on risky
RF : return on risk-free
op : risk on portfolio
oa : risk on risky
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11
Q

Expected Return on Port-folio

A

ERp = RF + op x (ERa-RF)/oa

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12
Q

PV

A

FV / ( 1 + i )^n

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13
Q

Rate of Return (RR)

A

CY - CG

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14
Q

Current Yield (CY)

A

PMT / Price of Bond

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15
Q

Capital Gain (CG)

A

(New price - Old Price) / Old Price

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16
Q

Fisher Equation

A

i nominal = i real + i expected inflation

17
Q

Forward Interest Rate (ie)

A

( 1 + ix )^x / ( 1 + ix-1)^x-1

18
Q

Trade-to-GDP

A

(Imports + Exports) / GDP

19
Q

Expected Rate (ER)

A

( 1 + i ) / ( 1 + i* ) x R