Formula sheet Flashcards
Geometric mean, harmonic mean, mean absolute deviation and percentile formula
Population variance, sample variance and sample target sample standard deviation formula
Coefficient of variation, order of MMM for skewness, probability stated as odds
Prob of A or B, Joint probaility of A and B, Joint Probability of any number of
independent events
Total probability rule, EV of random variable, variance of random variable
Portfolio E(r), Portfolio variance, covariance, correlation, bayes formula
Multiplication rule of counting, multinomial formula for labelling problems, combinaiton formula (# ways choose r from n) when order not matter
N choose r (order matters), Probability function for a Binomial
Random Variable
When to use Z-value or t-value
A z-test is used to test a Null Hypothesis if the population variance is known, or if the sample size is larger than 30, for an unknown population variance. A t-test is used when the sample size is less than 30 and the population variance is unknown.
Expected Value and Variance of a
Binomial Random Variable, Continuous Uniform Distribution
Standardizing a random normal variable and % within Stdevs, Safety-First Ratio, Degrees of Freedom of Student’s T-distribution, Standard Error of the Sample Mean (known and unknown pop variance)
CI formula and common Z-values, CI with small and large sample, Type 1 and 2 errors, power of a test, test of single mean
Test of diff in means (equal variances), Test of the Difference in Means (Unequal Variances), Test of Mean of Differences, Test of a Single Variance, Test of the differences in Variances
Test of correlation, regression coefficient, Assumptions of SLR, Total sum of squares of formula
Coef of determination, SE of estimate, F-Stat, test of slope coefficient
Test of intercept coefficient, prediction interval, break even and shutdown points, firm structures
Profit max point (all firms), GDP income and exp approach, Nom and real GDP
GDP deflator, National income, Personal income &
Personal disposable Income
AD shifts, AS SR and LR shifts
Growth accounting eq, Econ indicators, types of unemployment, CPI
Formula for marginal revenue
MP and CB objectives, FP and multiplier, EQ of exchange, GDP vs GNP
RTA types, BOP components
Real exchange rate formula, change in nominal exchange rate
Change in ReR, forward discount/premium, No-arb forward rate, ER regimes
Accounting equation, IS eq, FS analysis framework,
Revenue recog principles, 5-step revenue recog model, expense recog principle
Solvency ratios ( D to A, D to E, leverage), Coverage ratios (interest and fixed charge)
Profitability ratios (gross profit, net profit, op profit, ROA, ROE)
Du pont analysis, Traditional, extended
Dividend ratios (Div payout, retention rate, sustainable growth rate), WAC per unit, COGS (FIFO/LIFO)
LIFO to FIFO cogs, ending inventory, net income
LIFO vs FIFO, Inventory measure (IFRS vs GAAP)
Basic EPS, Diluted (if converted) and with convertible debt,
Treasury stock EPS, comprehensive income formula
Financial asset measurement, IFRS vs GAAP cash flow location for Interest received and paid and div received and paid
Direct vs indirect CF method, FCFF and FCFE formula
Activity ratios: recievables turnover, DSO, INV turnover, DOH, payables turnover, No days payable, fixed asset turnover, Total asset turnover
Liquidity ratios: current, quick, cash, defensive interval, cash conversion cycle
Inventory NRV formula, Depreciation methods
Revaluation of long-lived assets (GAAP vs IFRS), Capitalising vs expensing, Income tax expense, effective tax rate
DTA, DTL , permanent differences
Leasing vs purchasing, financing vs operating leases, pension plans types
Temporary differences asset and liability, Interest expense, effective interest method
Benefits of leasing vs purchasing?
Finance lease vs operating lease?
Treatment DC and DB pension plans?
WACC formula
COE using CAPM
COD
Cost of preferred stock
COE DDM approach
Sustainable growth rate formula
Beta L and UL formula
COE with floatation costs?
Floatation cost treatment with NPV
Degree of operating leverage formula
Degree of financial leverage formula
Degree of total leverage formula?
BE quantity of sales?
Operating BE point?
Operating and cash conversion cycle formula?
Cost of trade credit formula?
Margin call price?
Leverage ratio and initial equity %?
RoR for margin transaction?
Price weighted index value formula
Market weighted and equal weighted formula?
Forms of market efficiency ?
Industry life cycle stages and porters five forces
DDM stock value formula?
GGM value formula and sustainable growth formula?
Value of preferred stock formula?
Asset returns variance, Stdev, covariance and correlation formula?
Investment utility formula?
Portfolio return formula?
Portfolio standard deviation formula?
What is the capital allocation line and formula?
What is the capital market line?
Beta formula and alternative form with correlation in numerator?
Er CAPM?
What is the security market line?
What is the sharpe and treynor ratios?
What is the M^2 ratio and Jensens alpha?
What does an investment policy statement (IPS) have in it?
What is a CDO, a capital protected isntrument, Yield enhancement instruments, participation and leverage enhancing instruments?
What is flat price, full price and accrued interest formula?
What is the money market yield formula?
Who are the securitization parties?
What are CDO’s?
What are the elements of prepayment risk?
Formula for pass through rate and single monthly mortality rate (SMM)?
What are the credit risk ratios?
Debt-service coverage and loan to value?
Mac duration formula?
Modified duration formula?
Effective duration formula?
portfolio duration?
Modeny duration, PV full formula and what is the duartion gap?
Price value of basis point formula?
Approximate and effective convexity?
Price change estimate?
Expected loss, LGD?
Four C’s of credit?
What does F0T =?
Vt(T)of a forward equals what?
What happens to puts and calls from changes in stock price, exercise price, Time to expiration, risk free and volatility?
What is put-call parity?
What is a protected put, covered call and fiduciary call?
For BOPM what is the value of call, the risk neutral probability and the hedge ratio?
What are the types of hedge funds?
What are LBOs and what characteristics to target companies usually have?
What is venture capital and the five stages of financing?
What are the exit strategies?
What are the different ways to invest in real estate?
What is included in commodities, what are managed futures and what are the sources of return for commodities futures?
Describe an infrastructure investment/asset?
Formula for management fee calc and incentive fee calculation?
What is a hurdle rate, hard hurdle, soft hurdle, and high water mark?
