1
Moving Average Models MA(q)
In the moving average process of order q , each observation Yt is
generated by a weighted average of random disturbances going back q
periods.
It is denoted as MA(q) , and the equation is
Yt t 1 t 1 2 t 2 . q t q
where the pa

Formula Sheet
Present value of perpetuity
=
Present value of growing perpetuity
=
1
Present value of annuity
1
= (1
)
(1 + )
T
Bond Price =
C
(1 r )
t 1
t
F
C
1
1
T
r (1 r )T
(1 r )
F
(1 r )T
Capital Asset Pricing Model
( ) = + ( ) )
Equity Risk P

AN INTRODUCTION TO REGRESSION
ANALYSIS
Contents
the structure of econometric analysis
the simple and multiple linear regression
models
the method of Least Squares
statistical properties of Least Squares estimators
testing hypotheses using LS
goodnes

Corporate Finance
Aswath Damodaran
Home Page: www.stern.nyu.edu/~adamodar
E-Mail: adamodar@stern.nyu.edu
Stern School of Business
Aswath Damodaran
1
First Principles
n
Invest in projects that yield a return greater than the minimum
acceptable hurdle rate.