Formula Flashcards
Real Price (current yr)
Nominal Price current yr x (CPI base yr/ CPI current yr)
E (elasticity)
% change Q / % change P
Ex (cross-elasticity)
% change Qa / % change Pb
Pass-through
Es / (Es-Ed)
Labour Force (LF)
UE + E
Unemployment Rate (UR)
UE / LF
Participation Rate
LF / WAP
Income Effect
Change H / Change I
Substitution Effect
Change H / Change W
ERp ERa RF op oa
ERp : expected return on portfolio ERa : expected return on risky RF : return on risk-free op : risk on portfolio oa : risk on risky
Expected Return on Port-folio
ERp = RF + op x (ERa-RF)/oa
PV
FV / ( 1 + i )^n
Rate of Return (RR)
CY - CG
Current Yield (CY)
PMT / Price of Bond
Capital Gain (CG)
(New price - Old Price) / Old Price
Fisher Equation
i nominal = i real + i expected inflation
Forward Interest Rate (ie)
( 1 + ix )^x / ( 1 + ix-1)^x-1
Trade-to-GDP
(Imports + Exports) / GDP
Expected Rate (ER)
( 1 + i ) / ( 1 + i* ) x R