Quant

Perpetuity

Harmonic mean

Effective annual interest rate

Continuous EAR

Percentile position

Chebyshev inequality

Coefficient of variation

Probabilities – Multiplication

Addition

Total Probability

Covariance

Correlation

Portfolio Variance
Count labeling

Binomial Random variable

Confidence interval

z-score

Roy’s SF ratio

Continuous compounding

Standard error

Test statistic – Z-test

T-test

Power of test
Corporate finance

Payback period

Discount payback period

Profitability index

WACC

Cost of debt

Cost of preferred stock

Cost of equity – CAPM

Dividend model

Bond yield

Asset beta

Project beta

Sustainable growth
Degree of operating leverage

Degree of financial leverage

Degree of total leverage

Breakeven fixed cost

Operating cycle

Cash conversion cycle

Cost of trade credit

Money market yield

Bond equivalent yield

Equity

Leverage ratio

Margin call

Index weighting methods – Equal weighting

Price weighting

Market cap weighting

FCFE

Preferred stock valuation

Gordon growth model

Sustainable growth rate

Multistage DDM

P/E based on fundamentals- Leading/justified P/E

Enterprise value multiple

Asset based model- Market value of equity

Fixed Income

Inverse Floater

Inverse floater for leverage

Valuation using spot rate

Full price

Flat price

Matrix Pricing (Interpolate)

Current Yield

Simple yield

Bond equivalent yield: i.) Discount yield

ii.) Add-on yield

Valuing bonds with forward rate

Debt service coverage ratio

Loan-to-value ratio

Reinvestment income

Realized return

Capital gains/losses

Rate of return from change in YTM before first coupon payment

Mac Dur

Mod Dur

Approximate modified Dur/ Effective duration

Duration impact

Money Duration

Approximate convexity

Duration and convexity impact

Duration gap

Expected loss

Recovery rate

Debt to capital

Debt to EBITDA

FFO to debt

EBITDA to interest expense

EBIT to interest expense (more conservative)

Derivatives

Forward Price

Value at Expiration

Value during life

Forward Price when costs and benefits involved

Value at expiration when costs and benefits involved

Value during life when costs and benefits involved

Option Price

Put-call parity

Put-call forward parity

Binominal model – probability of an up move

Alternative Investment
Asset based valuation – NAV
Portfolio Management

Holding period of return

Geometric mean return

Real return

Correlation of a two-asset portfolio

Portfolio standard deviation

Beta

CAPM

Sharpe Ratio

M^2

Treynor

Jensen’s alpha
Economics

Elasticity of Demand

GDP

GDP deflator

Potential GDP

Growth in potential GDP

Money multiplier

Investors nominal interest rate

Neutral interest rate

Fiscal Multiplier

Opportunity Cost

Real exchange rate

No arbitrage effect
Financial Reporting Analysis

Basic Earnings per share

Diluted ESP

Increase in shares from exercise of stock options

Free cash flow to firm

Free cash flow to equity i.)

ii.).

Cumulative Revenue recognition

Cash flow from Investing:

Asset sale =

Net book value =

Return of Assets

Return on Equity DuPont

Ending Inventory

Net realizable value

Straight-line depreciation

Double declining depreciation

Units of production method (depreciation)

Average age

Total useful life

Remaining useful life

DTL

Total interest paid on bonds

Interest Expense

Tax expense

Change in tax rate effect

LIFO to FIFO