Finance · CFA Level 1

CFA Level 1 Formulas

Core CFA Level 1 formulas (time value of money, quant, financial ratios) as cloze cards.

41 cards · cloze cards · AI-written, checked twice. Edit anything.

Study this set free Get FlashKeepers for iPhone
The present value of a future cash flow is calculated as PV = ____
FV / (1 + r)^n
The future value of a present lump sum is calculated as FV = ____
PV × (1 + r)^n
Net Present Value is calculated as NPV = ____
sum of (CF_t / (1 + r)^t) - Initial Investment
The Internal Rate of Return is the discount rate where ____
NPV = 0
The present value of an annuity due (payment at start of period) is PV = ____
PMT × ((1 - (1 + r)^-n) / r) × (1 + r)
The present value of an ordinary annuity (payment at end of period) is PV = ____
PMT × ((1 - (1 + r)^-n) / r)
The present value of a perpetuity is calculated as PV = ____
PMT / r
The Effective Annual Rate is calculated as EAR = ____
(1 + r/m)^m - 1
The Coefficient of Variation is calculated as CV = ____
Standard Deviation / Mean
Correlation between two variables is calculated as r = ____
Covariance / (SD_X × SD_Y)
Covariance between two variables X and Y is Cov(X,Y) = ____
E[(X - E(X))(Y - E(Y))]
The standard deviation is the square root of ____
variance
Expected return on a portfolio is calculated as E(R_p) = ____
sum of (weight_i × R_i)
Portfolio variance with two assets is Var(R_p) = ____
w_A^2 × SD_A^2 + w_B^2 × SD_B^2 + 2 × w_A × w_B × Cov(A,B)
Beta is calculated as Beta = ____
Covariance(R_stock, R_market) / Variance(R_market)

26 more cards in the app