Exam 1 Formulas

# Exam 1 Formulas - Formulas you should memorize for exam 1...

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Formulas you should memorize for exam 1: Total Dollar Return of Stock = Dividend Income + Capital Gain or Loss Dividend yield = D t + 1 P t Capital gains yield = P ( ¿¿ t + 1 P t ) P t ¿ Percent Return on a Stock = Dividend Income + CapitalGain Loss Beginning Stock Price Per Share Percentage Return = Dividend yield + Capital gains yield Standard Deviation = = Variance Arithmetic Average Return = i = 1 n yearlyreturn n Risk Premium = Expected Return – Risk-free Rate Margin and margin requirements for long and short positions. Amount repaid = Amount borrowed x (1 + interest rate per year) t Net Asset Value = Net Assets SharesOutstanding

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TERM EXAM 1 FORMULAS Call option break-even price = Strike price + option premium Put option break-even price = Strike price – option premium Turnover = Thelesser of total purchases
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