IMC Pt 2 Formulae Flashcards
Arithmetic Mean
(Statistics)
Geometric Mean
(Statistics)
Standard Deviation
(Statistics)
Variance
(Statistics)
Correlation Coefficient
(Statistics)
Linear Regression
(Statistics)
Compounding Formula
(Financial Maths)
Compounding Continuously
(Financial Maths)
Single Cash Flow Discounting
(Financial Maths)
Annuity Formula
(Financial Maths)
Perpetuity Formula
(Financial Maths)
Effective Annual Rate (AER)
(Financial Maths)
Index Factor for Price Weighted Indices
(Information and Indices)
Index Factor for Market-Value Weighted Indices
(Information and Indices)
Holding Period Return (HPR)
(Equities: Types and Features)
Gordon’s Growth Model
(Equities: Types and Features)
g = Retention Ratio x ROE
Warrant Formula
(Equities: Types and Features)
Percent Premium
(Equities: Types and Features)
Conversion Price
(Debt: Types and Features)
Conversion Premium
(Debt: Types and Features)
Theoretical Price of a Convertible Bond
(Debt: Types and Features)
Present Value of a Bond
(Debt: Types and Features)
Flat Yield
(Debt: Types and Features)
Gross Redemption Yield (Yield to Maturity)
(Debt: Types and Features)
Iterative process using the present value of a bond formula
Net Redemption Yield
(Debt: Types and Features)
Macaulay Duration
(Debt: Types and Features)
Modified Duration (MD)
(Debt: Types and Features)
Interest Rate Parity
(Foreign Exchange)
Purchasing Power
(Foreign Exchange)
Fair Value of a Future
(Derivatives and Other Instruments)
Basis
(Derivatives and Other Instruments)
Hedge Ratio for Index Futures - Basic Hedge
(Derivatives and Other Instruments)
Hedge Ratio for Index Futures - Beta Hedge
(Derivatives and Other Instruments)
Option Premiums
(Derivatives and Other Instruments)
Delta
(Derivatives and Other Instruments)
Rental Yield
(Alternative Insvestments)
Money Weighted Rate of Return (MWRR)
(Portoflio Theory)
Time Weighted Rate of Return (TWRR)
(Portoflio Theory)
Separates returns into seperate holding periods and calculates geometric return over the full period
Total Risk
(Portoflio Theory)
Beta
(Portoflio Theory)
Capital Asset Pricing Model (CAPM)
(Portoflio Theory)
Jensen’s Alpha
(Portoflio Theory)
Sharpe Ratio
(Portoflio Theory)
Treynor
(Portoflio Theory)
Information Ratio
(Portoflio Theory)
Performance Measurement of a Bond Portfolio
(Portoflio Theory)
Capital Asset Pricing Model for a Bond Portfolio
(Portoflio Theory)
Straight Line Method of Depreciation
(Company Accounts)
Reducing Balance Method of Depreciation
(Company Accounts)
Earnings Per Share (EPS)
(Ratio Analysis)
Earnings Yield
(Ratio Analysis)
Dividend Yield
(Ratio Analysis)
Dividend Cover
(Ratio Analysis)
Price-Earnings Ratio (PE)
(Ratio Analysis)
Debt to Equity Ratio (Gearing Ratio)
(Ratio Analysis)
Operational Gearing (Gearing Ratio)
(Ratio Analysis)
Interest Cover (Gearing Ratio)
(Ratio Analysis)
Current Ratio (Liquidity Ratio)
(Ratio Analysis)
Quick Ratio (Liquidity Ratio)
(Ratio Analysis)
Return On Capital Employed
(Ratio Analysis)
Price Elasticity of Demand
(Micro Economics)
Elastic > 1
Inelastic < 1
Shift ALONG the demand curve
Income Elasticity of Demand
(Micro Economics)
0 > Normal good < 1
1 > Luxury good
Inferior good < 1
Giffen good: Price rise = demand up
Shift IN the demand curve
Cross Elasticity of Demand
(Micro Economics)
+ive = substitute goods
-ive = complementary goods
Shift IN the demand curv
Basic Multiplier (Multipliers)
(Macro Economics)
Full Multiplier (Multipliers)
(Macro Economics)
Money Multiplier (Multipliers)
(Macro Economics)
Internal Rate of Return
PV (Inflows) - PV (Outflows) = 0
Economic (Supernormal) Profit
Accounting profit - cost of sales - all other opportunity costs (owners time, next best use of capital etc.)
Psotive Skew
Mean > Median > Mode
