COMMERCE 2FA3 Study Guide - Midterm Guide: Discount Window, Lance, Net Present Value

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 2FA3
• Professor: Nicole Wagner

Document Summary

Interest rates: r: nominal interest rate r*: real interest rate. : price change by the end of the period. Vt: future value k: interest rate t: time. Effective rate based on compounding frequency: k(stated): stated interest rate m: compounding frequency. Continuously compounded discount rate: kc: continuously compounded rate. Growing annuities for present value: g: growth rate. : sample mean n: sample size s2: sample variance s: sample standard deviation. E(x): expected value xi: all possible realizations probi: probability of each of these values occurring m: number of different possible realizations. Rp: return on a portfolio n: number of securities xi: weight of securities.