The Sharpe Ratio Formula
Sharpe Ratio = (return of the portfolio - risk free return) / Standard Deviation.
Perpetual Payment Formula
You may be asked to calculate the amount of money necessary to receive a set payment in perpetuity, assuming a certain rate of return. Step 1: Expected rate of return / number of payments per year = monthly expected return, Step 2: Monthly dollar amount / monthly expected return = Funds Needed.
Current Yield on Bonds Formula
Current Yield = Annual Interest/ Current Market Price
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