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RO2 Investment Principles And Risk > Formulas > Flashcards

Formulas Flashcards

1
Q

Running yield.

A

Coupon/clean x 100

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2
Q

Redemption yield

A

Running yield +/- ((gain/loss÷years)÷clean) x 100

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3
Q

EPS

A

Profit to ordinary shareholders÷number of ordinary shares in issue

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4
Q

Liquidity ratio

A

Current assets-stock ÷ current liabilities

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5
Q

Gearing

A

Long-term debt ÷ Shareholder funds

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6
Q

Dividend yield

A

Dividend per share ÷ current share price x100

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7
Q

Dividend per share

A

Dividend paid in period÷number of ordinary shares x 100

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8
Q

Dividend cover on individual basis

A

Earnings per share÷dividend per share

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9
Q

Dividend cover on total profit basis

A

Profit to ordinary shareholders ÷ dividend paid to ordinary shareholders

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10
Q

P/E

A

Current market share price÷earnings per share

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11
Q

NAV

A

Ordinary shareholders’ net assets÷ ordinary shares issued

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12
Q

Net assets attributable to ordinary shareholders

A

Total capital - secured, unsecured loans and preference shares

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13
Q

Rental yield

A

((Monthly rent-monthly expenses)x12)÷(House price+legal fees etc.)x100

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14
Q

Growth velocity

A

GDP÷money supply

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15
Q

CAPM

A
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16
Q

Describe the symbols

17
Q

PV

A

The present value of money - amount invested now to arrive at a future value

18
Q

N

A

Time period over which money is invested. (Usually, years but can be any time period)

19
Q

R or i

A

Rate of return used. (Expresed a decimal)

20
Q

FV

A

Future value of money invested at a certain rate (r over n)

21
Q

Simple compounding

A

RV=PV(1+r)n

22
Q

Simple compound with an extra year of interest. (Paid at the start of the year)

23
Q

Current price from future value

A

PV=FV÷(1+r)n

24
Q

Chargeable gain on non qualifying policies

A

=(amount paid out + previous withdrawals) - (original investment + previous chargble gains)

25
Q

Time apportionment relief for reducing chargeable gain

A

No. of days policy holder not resident in the uk÷no. of days policy run

26
Q

What is R in performance related equations?

A

Holding period return

27
Q

What is V0 in performance related equations?

A

The value of the portfolio at the start of the period

28
Q

What is V1 in performance related equations?

A

The value of the portfolio at the end of the period

29
Q

What is D in performance related equations?

A

The income received during the period.

30
Q

What is n in performance related equations?

A

The number of months remaining in the year

31
Q

What is C in performance related equations?

A

New money introduced during the year.

32
Q

Holding period return

33
Q

Holding Period of Return

34
Q

Money Weighted Rate of Return

35
Q

Sharpe ratio

36
Q

Information Ratio

37
Q

Alpha

38
Q

Time weighted rate of return

RO2 Investment Principles And Risk (18 decks)

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