[FORMULAS] Risk and Return

Question 1

What is the formula for CAPITAL GAIN or LOSS?

Answer 1

Capital gain or loss = Ending Price - Beginning Price

Question 2

What is the formula for TOTAL PESO or DOLLAR RETURN on one period?

Answer 2

Total Peso or Dollar Return = Income + Capital Gain - Loss

Question 3

What is the formula for Total Percentage Return?

Answer 3

Total Percentage Return = Total ₱or $ Return / Beginning Price

Question 4

What is the formula for Holding Period Return?

Answer 4

HPR = Dividends + (End Price - Beginning Price)/Beginning Price)

Question 5

What is the formula for YIELD RATE?

Answer 5

Yield Rate = Income / Cost

Question 6

What is the formula for CURRENT YIELD?

Answer 6

Current Yield = Income / Current Price

Question 7

What is the formula for APPRECIATION?

Answer 7

Appreciation = Current Price - Cost / Cost Price

Question 8

What is the formula for TOTAL PERCENTAGE RETURN?

Answer 8

Total Percentage Return = Yield + Appreciation

Question 9

What is the formula for REQUIRED RETURN?

Answer 9

Required Return = Real Rate of Return + Expected Inflation Premium + Risk Premium