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Formulas Examform

The document provides essential financial formulas used in the CFP® Certification Examination, including equations for valuation, returns, covariance, and standard deviation. Key formulas include the valuation of dividends, risk-adjusted returns, and the calculation of portfolio risk. These formulas are critical for understanding financial analysis and investment strategies.

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Arvind Rio
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5 views

Formulas Examform

The document provides essential financial formulas used in the CFP® Certification Examination, including equations for valuation, returns, covariance, and standard deviation. Key formulas include the valuation of dividends, risk-adjusted returns, and the calculation of portfolio risk. These formulas are critical for understanding financial analysis and investment strategies.

Uploaded by

Arvind Rio
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Provided Formulas

These formulas are provided with the exam booklets when taking the CFP® Certification Examination:

D1
V = ri = r f + (rm − r f )β i
r−g

D1  rm − r f 
r= +g r p = r f + σ p  
P

σ m 

rp − r f
COV = ρ ijσ iσ j Sp =
ij σp

σp = W 2σ 2 + W 2σ 2 + 2W W COV α p = r p − r f +  r − r  β 
i i j j i j ij   m f  p

COV ρ imσ i rp − r f
βi = im
= Tp =
σm
2 σm βp

n n ct (t )
∑ (rt − r ) 2 ∑
(1 + i) t
σr = t =1 D = t =1
n n ct
∑ t
t = 1 (1 + i)
n
∑ (rt − r ) 2
t =1 1+ y (1 + y) + t (c − y)
sr = D= −
n −1 y c (1 + y)t − 1 + y
 

Par ∆P  ∆y 
CV = ×P = −D 
CP s P 1 + y 

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