formulas1 - E ( r a )][ r b ( s )-E ( r b )] ( r a , r b )...

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Some useful formulas Margin = Value of assets - Loan Value of assets Margin = Equity in account Value of stock owed NAV = Assets - Liabilities Shares outstanding r = P 1 - P 0 + D P 0 r m = r (1 - t ) I pw = P 1 + P 2 + ... + P n n I vw = P 1 Q 1 + P 2 Q 2 + ... + P n Q n 100 E ( r )= X s Pr ( s ) r ( s ) σ 2 = X s Pr ( s )[ r ( s ) - E ( r )] 2 E ( r p )= n X i =1 w i E ( r i ) Cov ( r a ,r b )= X s Pr ( s )[ r a ( s ) -
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Unformatted text preview: E ( r a )][ r b ( s )-E ( r b )] ( r a , r b ) = Cov ( r a , r b ) a b 2 p = w 2 a 2 a + w 2 b 2 b + 2 w a w b Cov ( r a , r b ) U = E ( r )-1 2 . 01 A 2...
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This note was uploaded on 11/02/2011 for the course FIN 310 taught by Professor Ardaugh during the Fall '09 term at Ill. Chicago.

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