Holding Period Return: HPR = P1-Po+D1 Po Z-Score: r-r 2=7-* z= Future Value of a Single Sum: FV = PV0(1 + i)n Present Value of a Single Sum: PV0 = FVn FV ( (1 + i)n, Future Value of an Ordinary Annuity: FVANi,n = PMT = (1 + 1) = -1) i Present Value of an Ordinary Annuity: PVANO = PMT 1 1 (1 + i)n i Expected Return of a Portfolio of Assets: n fp = wjfj Standard Deviation for a 2-Asset Portfolio: Op = wo + w0 + 2W1 W2 P1,20102 Beta of an Asset/Portfolio: covarj,m Bj om Pj,mojom m Capital Asset Pricing Model (Security Market Line): - k; = r + ; (m rf) Bond Valuation: Future Value of an Annuity Due: FVANDi,n = PMT ((1+i)n1) (1 + i) Present Value of an Annuity Due: 1 1 Po = I (1+ka)n kd M + (1+ka)n Preferred Stock Valuation (No Growth): PVANDO = PMT (1+i)n (1 + i) Po = Effective Annual Interest Rate: Less = (1 + nom) ieff - 1 Expected Return of an Asset: f = n Pjfj Standard Deviation of an Asset: = n j=1 (r; f)pj - Common Stock Valuation (Constant Growth): = D ke - g Net Operating Cash Flow: NCFp.a. = (ARp.a. - AOp.a. - ADepp.a.) (1 T) + ADepp.a. - ANWCp.a. Cost of Capital: ka = E B - = (E + B + P) ke + ( E + B + P) ka(1 T) +(E+B+P) p \E + B + Pf. Kp Coefficient of Variation: v = 64