FIN 300 Final: crib sheet.pdf

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Pv = fv / (1 + r)^t r = (fv / pv)1 / t 1 t = ln(fv / pv) / ln(1 + r) Annuity pressent value = c * (1- [1/(1 + r)^t] / r) Annuity due value = ordinary annuity value * (1+ r) Ear = [1 + (quoted rate/m)]m 1. Pv = {c /(r g)}{[1 [(1 + g)/(1 + r)]t} Bond value = c (1 1/(1 + r)t)/r + f/(1 + r)t. 1 + r = (1 + r) (1 + h) R= r + h + r h. = (s c d) + d (s c d) tc. Ocf = (s c d) (1 tc) + d. Ocf = (s c) (s c d) tc. Risk premium = expected return risk-free rate. Total return = expected return + unexpected return r = e(r) + u. R = e(r) + systematic portion + unsystematic portion. Total risk = systematic risk + unsystematic risk.

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