This study source was downloaded by 100000766991600 from CourseHero com on 09 19 2024 08 08 53 GMT 05 00 https www coursehero com file 40433043 formula sheet midterm1 4000 fall 2013doc Formula SheetFI 4000 Fall 2013Midterm Exam 1Future ValuetrPVFV 1 Present ValuetrFVPV 1 Annuity CalculationsEAR FormulaHolding Period Return010010101PDPPPPDPPHPR Expected Return with probabilities Variance with Probabilities SsAAAArEsrsprVAR122 Portfolio Expected ReturnCovariance between S and B 1BBSiSSBSrirririprrCov Correlation CoefficientBSBSSBrrCov Using Historical DataMean Return TrrrrT 21Variance 1122221rrrrrrTT Covariance between S and B 1 SsAAsrsprE1 mjjjPREwRE1 1 1 1 11 TTrrCFVrrCPV1 mAPR 1 EARm This study source was downloaded by 100000766991600 from CourseHero com on 09 19 2024 08 08 53 GMT 05 00 https www coursehero com file 40433043 formula sheet midterm1 4000 fall 2013doc Powered by TCPDF www tcpdf org 111BBtsStTtrrrrT Two Risky Assets PortfolioExpected Return of Risky Portfolio P ssBBPrEwrEwrE The Variance of Risky Portfolio P BSSSBBSSBBPwwww 2 222 BSSBSSBBwwww 2 22 Single Factor ModeliiiieMrER Single Index Model of Security ReturnsiMiiieRR CAPMnnMMppfMpfpwwwrVarrrCovrrErrE 2211Decomposing Variance iMiiieRVarianceRVariance 222iMie 2
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