Summary List of Equations, 12th Edition

Investments: Analysis and Management

Chapter 2

Tax-exempt municipal yield

Taxable equivalent yield = -------------------------- (2-1)
1 - Marginal tax rate

Chapter 5

Amount investor puts up

Initial margin = ------------------------ (5-1)
Value of the transaction

Current value of securities – Amount borrowed

Actual margin % = --------------------------------------------- (5-2)
Current value of securities

Amount borrowed
Margin Call price = ------------------------------------------------- (5-3)
Number of shares (1 - maintenance margin percentage)

Chapter 6

Total return = Yield + Price change (6-1)

CFt + (PE - PB) CFt + PC

TR = -------------- = --------- (6-2)
PB PB

CFt + PE
Return relative = RR = -------- (6-3)
PB

CWIn = WI0 (1 + TR1)(1 + TR2) . . . (1 + TRn) (6-4)

Total return in  Ending value of foreign currency 

= RR X ------------------------------------ - 1.0 (6-5)
domestic terms  Beginning value of foreign currency
 _ X
X = --- (6-6)
N

G = [(1 + TR1)(1 + TR2) ... (1 + TRn)]1/n – 1 (6-7)

(1 + TR)
TRIA = -------- - 1 (6-8)
(1 + IF)

n _
 (X - X )2
i=1
2 = ------------- (6-9)
n – 1