IFIC Financial Formulas: NAV, Rate of Return,
MER & More
[(CPI current - CPI Past) / CPI Past] x 100 - correct answer ✔✔Consumer Price Index (CPI)
Annual Cash Flow / Current Market Price x 100- or seven-day yield x 365/7 - correct answer
✔✔Current Yield
[interest income +/- price change per compounding period / (purchase price + par value)/2 ] x
100 - correct answer ✔✔Approx Yield to Maturity
Dividend (annual) / ip (annual yield currently offered on preffered shares) - correct answer
✔✔Pp (current market value of preffered shares)
cash flow + capital gains - correct answer ✔✔expected Returns
nominal rate - rate of inflation - correct answer ✔✔Real Return
Cash Flow + Capital Gains / beginning value x 100 - correct answer ✔✔Return %
R1 + R2 + R... / T (number of returns) - correct answer ✔✔artithmetic mean return
([(1+R1) x (1+R2) x (1+Rn)] ^ 1/T )- a - correct answer ✔✔Geometric Return
R1(W1) + R2(W2) + Rn(Wn) - correct answer ✔✔portfolio Return
MER & More
[(CPI current - CPI Past) / CPI Past] x 100 - correct answer ✔✔Consumer Price Index (CPI)
Annual Cash Flow / Current Market Price x 100- or seven-day yield x 365/7 - correct answer
✔✔Current Yield
[interest income +/- price change per compounding period / (purchase price + par value)/2 ] x
100 - correct answer ✔✔Approx Yield to Maturity
Dividend (annual) / ip (annual yield currently offered on preffered shares) - correct answer
✔✔Pp (current market value of preffered shares)
cash flow + capital gains - correct answer ✔✔expected Returns
nominal rate - rate of inflation - correct answer ✔✔Real Return
Cash Flow + Capital Gains / beginning value x 100 - correct answer ✔✔Return %
R1 + R2 + R... / T (number of returns) - correct answer ✔✔artithmetic mean return
([(1+R1) x (1+R2) x (1+Rn)] ^ 1/T )- a - correct answer ✔✔Geometric Return
R1(W1) + R2(W2) + Rn(Wn) - correct answer ✔✔portfolio Return
