Quicksheet Formulas

Question 1

Correlation, given covariance and and standard deviation of two parameters.

Answer 1

Correlation (R) = Cov(x,y) / (Sx)(Sy)

Question 2

t-stat for R

Answer 2

t-stat = r√n-2 / 1-r²

Question 3

Estimated Slope Coefficient

Answer 3

Slope Coefficient = Cov(x,y) / σ²

Question 4

Confidence Interval

Answer 4

Confidence Interval = Mean +- (tc)(SE)

Question 5

t-stat

Degrees of freedom

No. of Tails

Answer 5

t-stat = b1 / SE

N-K-1 degrees of freedom

2 tails

Question 6

F-stat

Degrees of freedom

No. of tails

Answer 6

MSE/MSR

MN-K-1

1-tail

Question 7

Standard Error of the Estimate

Answer 7

SEE = √MSE

Question 8

Mean-Reverting Level for Autoregression

Answer 8

Mean Reverting Level AR(1) = B0 / (1-b1)

Question 9

Bid Cross Rate (A,C)

Answer 9

A/C Bid .= A/B Bid x B/C Bid

Question 10

Ask Cross Rate (A,C)

Answer 10

A/C Ask = A/B Ask x B/C Ask

Question 11

Value of Forward Currency Contract

Answer 11

Vt = (FPt - FP)(Contract Size) / (1+R(t/360))

Question 12

Covered Interest Rate Parity

Answer 12

F = S * (1+Ra) / (1+Rb)

Question 13

Uncovered Interest Rate Parity

Answer 13

E(%△S) = Ra - Rb

Question 14

International Fisher Relation

Answer 14

Ra - Rb = E(i)a - E(i)b