IMC Pt 2 Formulae Flashcards by Todd Ledwith

Q

Arithmetic Mean

(Statistics)

A

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Q

Geometric Mean

(Statistics)

A

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Q

Standard Deviation

(Statistics)

A

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Q

Variance

(Statistics)

A

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Q

Correlation Coefficient

(Statistics)

A

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Q

Linear Regression

(Statistics)

A

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Q

Compounding Formula

(Financial Maths)

A

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Q

Compounding Continuously

(Financial Maths)

A

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Q

Single Cash Flow Discounting

(Financial Maths)

A

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Q

Annuity Formula

(Financial Maths)

A

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Q

Perpetuity Formula

(Financial Maths)

A

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Q

Effective Annual Rate (AER)

(Financial Maths)

A

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Q

Index Factor for Price Weighted Indices

(Information and Indices)

A

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Q

Index Factor for Market-Value Weighted Indices

(Information and Indices)

A

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Q

Holding Period Return (HPR)

(Equities: Types and Features)

A

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Q

Gordon’s Growth Model

(Equities: Types and Features)

A

g = Retention Ratio x ROE

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Q

Warrant Formula

(Equities: Types and Features)

A

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Q

Percent Premium

(Equities: Types and Features)

A

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Q

Conversion Price

(Debt: Types and Features)

A

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Q

Conversion Premium

(Debt: Types and Features)

A

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Q

Theoretical Price of a Convertible Bond

(Debt: Types and Features)

A

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Q

Present Value of a Bond

(Debt: Types and Features)

A

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Q

Flat Yield

(Debt: Types and Features)

A

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Q

Gross Redemption Yield (Yield to Maturity)

(Debt: Types and Features)

A

Iterative process using the present value of a bond formula

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Net Redemption Yield | (Debt: Types and Features)

Macaulay Duration | (Debt: Types and Features)

Modified Duration (MD) | (Debt: Types and Features)

Interest Rate Parity | (Foreign Exchange)

Purchasing Power | (Foreign Exchange)

Fair Value of a Future | (Derivatives and Other Instruments)

Basis | (Derivatives and Other Instruments)

Hedge Ratio for Index Futures - Basic Hedge (Derivatives and Other Instruments)

Hedge Ratio for Index Futures - Beta Hedge (Derivatives and Other Instruments)

Option Premiums | (Derivatives and Other Instruments)

Delta | (Derivatives and Other Instruments)

Rental Yield | (Alternative Insvestments)

Money Weighted Rate of Return (MWRR) | (Portoflio Theory)

Time Weighted Rate of Return (TWRR) | (Portoflio Theory)

Separates returns into seperate holding periods and calculates geometric return over the full period

Total Risk | (Portoflio Theory)

Beta | (Portoflio Theory)

Capital Asset Pricing Model (CAPM) | (Portoflio Theory)

Jensen's Alpha | (Portoflio Theory)

Sharpe Ratio | (Portoflio Theory)

Treynor | (Portoflio Theory)

Information Ratio | (Portoflio Theory)

Performance Measurement of a Bond Portfolio (Portoflio Theory)

Capital Asset Pricing Model for a Bond Portfolio (Portoflio Theory)

Straight Line Method of Depreciation | (Company Accounts)

Reducing Balance Method of Depreciation | (Company Accounts)

Earnings Per Share (EPS) | (Ratio Analysis)

Earnings Yield | (Ratio Analysis)

Dividend Yield | (Ratio Analysis)

Dividend Cover | (Ratio Analysis)

Price-Earnings Ratio (PE) | (Ratio Analysis)

Debt to Equity Ratio (Gearing Ratio) (Ratio Analysis)

Operational Gearing (Gearing Ratio) | (Ratio Analysis)

Interest Cover (Gearing Ratio) | (Ratio Analysis)

Current Ratio (Liquidity Ratio) | (Ratio Analysis)

Quick Ratio (Liquidity Ratio) | (Ratio Analysis)

Return On Capital Employed | (Ratio Analysis)

Price Elasticity of Demand | (Micro Economics)

Elastic \> 1 Inelastic \< 1 Shift ALONG the demand curve

Income Elasticity of Demand | (Micro Economics)

0 \> Normal good \< 1 1 \> Luxury good Inferior good \< 1 Giffen good: Price rise = demand up Shift IN the demand curve

Cross Elasticity of Demand | (Micro Economics)

+ive = substitute goods -ive = complementary goods Shift IN the demand curv

Basic Multiplier (Multipliers) | (Macro Economics)

Full Multiplier (Multipliers) | (Macro Economics)

Money Multiplier (Multipliers) | (Macro Economics)

Internal Rate of Return

PV (Inflows) - PV (Outflows) = 0

Economic (Supernormal) Profit

Accounting profit - cost of sales - all other opportunity costs (owners time, next best use of capital etc.)

Psotive Skew

Mean \> Median \> Mode