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