Formulas you should memorize for final exam(2)

Formulas you should memorize for final exam(2) - Formulas...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Formulas you should memorize for final exam: Ch. 7 Payout ratio = Dividends per share ( DPS ) Earnings per share ( EPS ) Retention Ratio = 1 – Payout Ratio Ch. 11 Current yield = Annualcouponamount Current market bond price Ch. 12 Total Return = Expected Return + Unexpected Return Total risk = Systematic risk + Unsystematic risk Portfolio beta = p = w a a + w b b Ch. 14 Call option intrinsic value = MAX[S – K, 0] Put option intrinsic value = MAX[K – S, 0] Option time value = option price – option’s intrinsic value
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Formulas that will be given on the final exam: NI = RI + IP + RP Bond Equivalent Yield = 360 days 365 ×discount yield ¿ maturity×discount yield ¿ Treynor ratio = R p R f p Jensen’s alpha = R p – {R f + [E(R M ) – R f ] p } Sharpe Ratio = E ( R p )
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern