Formula Sheet

Holding Period Return: Z-Score:

HP ̂

Future Value of a Single Sum: Expected Return of a Portfolio of Assets:

( )
̂ ∑ ̂
Present Value of a Single Sum:

( * Standard Deviation for a 2-Asset Portfolio:

( )
√
Future Value of an Ordinary Annuity:
( )
( ) Standard Deviation for an n-Asset Portfolio:

Present Value of an Ordinary Annuity: √∑ ∑∑

( )
( )
Capital Market Line:

̂ (̂ )
Future Value of an Annuity Due:
( )
( )(1+i) Beta of an Asset/Portfolio:

Present Value of an Annuity Due:

( )
( )(1+i)
Security Market Line:
(̂ )
Present Value of a Perpetuity:

Bond Valuation:

( )
Effective Interest Rate: ( )
( )
( *

Stock Valuation (No Growth):

Nominal Interest Rate (From Effective Rate):
( ) ⁄
√

Expected Return of an Asset: Stock Valuation (Constant Growth):

̂ ∑ ̂

Cost of Capital:
Standard Deviation of an Asset:
( * ( * ( )

√∑( ̂) ( )

Coefficient of Variation:

̂ Student #_________________________________