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Useful cheat sheet with Finance formulas
Typology: Cheat Sheet
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n
r
n FV PV r
n PVA CF (^) r
r
n
A
r FV CF
r
p
r
s s
Div g P r g
m APR EAR
m
n m r FV PV
m
(^)
n m
A
r
PV CF (^) m
r
m
n m
A
r
m FV CF
r
m
(^) ^ ^
1
n FV r PV
1
n
p i i i
E r w E r
Variance of a 2-asset portfolio:
2 2 2 2 2
Variance of a 3-asset portfolio:
2 2 2 2 2 2 2
Correlation coefficient between series 1 and 2:
1, 1, 1 2
Covariance between time series x and y :
1 , 1
n
i i i x y
x x y y
n
Variance of asset x :
2
(^2 )
1
n
i i x
x x
n
Beta of security i = (^) , i i i m m
, or
Beta of security i =
, 2
i m i m
= covariance between returns of i and the market ( m ) ÷ variance of m
, also known as the CAPM
or, alternatively:
1
0
S
E r g P
= dividend yield plus expected growth
Net Income Return on Assets = Total Assets
Net Income ROE Shareholders' Equity
ROE = Profit Margin Asset Turnover Equity Multiplier
ROE = ROA equity multiplier
Net Income Sales Total Assets ROE Sales Total Assets Shareholders' Equity
