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Unformatted text preview: EXAM II FIN312 FORMULAS Rate of return (or holding period return ) = E ( r ) = Ps rs
s =1 n ( P1 - P0 ) + D1 P0 2 = Ps [ rs - E ( r )]2
s =1 n E(rc) = yE(rp) + (1 - y)rf c = y p
E ( rp ) = w1 E ( r1 ) + w2 E ( r2 )
2 2 = w 2 1 12 + w2 2 2 + 2 w1 w2 Cov (r1 , r2 ) p Cov ( r1 , r2 ) = 1,2 1 2 E[ri ] = r f + [ E (rm ) - r f ] = Cov (ri , rm )
2 m E[ri] = rf + 1E(F1 - rf)+ 2E(F2 - rf)+ 3E(F3 - rf)+.... ...
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This note was uploaded on 04/07/2008 for the course FIN 312 taught by Professor Staff during the Spring '08 term at Bryant.
- Spring '08