1
m
é APR ù
EAR = ê1 +
-1
m úû
ë
1
APR = m é (1 + EAR) m - 1ù
êë
úû
2
Current yield = the bond’s annual coupon divided by its price.
3
P -P D
- +
HPR = P1 P0 D1 = 1 0 + 1
P0
P0
P0
Arithmetic average = (r1 + r2 + r3 + ... rn) / n
n
n
i =1
i =1
E ( R) = å Ri pi s 2 = å ( Ri - E[ R ]) 2 pi
4
E[rp]= w1E[r1]+w2E[r2]
σp2 = w12σ12 + w22σ22 + 2w1w2 Cov(r1,r2)
Cov(r1r2) = Corr(r1,2) σ1 σ2
5
6
0
