Finance Formula Cheat Sheet , Cheat Sheet of Finance

Download Finance Formula Cheat Sheet and more Cheat Sheet Finance in PDF only on Docsity! Finance Formulas, Page 1 of 3  1 n FV PV r    1 nFV PV r    1 1 1 n APV CF r r           1 1n A rFV CF r         p CF PV r   0 1 s s Div g P r g    1 1 m APR EAR m        1 n m r FV PV m        1 1 1 n m A r PV CF m r m                  1 1 n m A r mFV CF r m                1 1 nFV r PV      Finance Formula Sheet Finance Formulas, Page 2 of 3 Expected return of a portfolio:     1 n p i i i E r w E r    Variance of a 2-asset portfolio: 2 2 2 2 21 1 2 2 1 2 122p w w w w      Variance of a 3-asset portfolio: 2 2 2 2 2 2 21 1 2 2 3 3 1 2 12 1 3 1 3 2 3 232 2 2p w w w w w w w w w            Correlation coefficient between series 1 and 2: 1,21,2 1 2      Covariance between time series x and y:    1 , 1 n i i i x y x x y y n        Variance of asset x:  2 2 1 1 n i i x x x n       Beta of security i = , i i i m m      , or Beta of security i = , 2 i m i m     = covariance between returns of i and the market (m) ÷ variance of m Expected return on equity (stock) =    S mE r rf E r rf     , also known as the CAPM or, alternatively:   1 0 S D E r g P   = dividend yield plus expected growth Net Income Return on Assets = Total Assets Net Income ROE Shareholders' Equity  ROE = Profit Margin Asset Turnover Equity Multiplier  ROE = ROA equity multiplier Net Income Sales Total Assets ROE Sales Total Assets Shareholders' Equity   