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Wealth Management
Formulae List
Claim Amount = {Insured Value/80% of the market value} * Claim Value
Human Life Value (HLV) = Annual Income * HLV Index
Surrender Value = Cash Value + Surrender Dividends (Loans & Charges)
NAV
= {Market Value of the Fund Investment (including cash) + Income
Accrued Expenses Accrued}/Number of units outstanding
Absolute Returns = (Final Value Initial Value)/Initial Value
Holding Period Return (HPR) = (MVE MVB)/MVB
Money Weighted Return (MWR)
= S1 + S2/(1+r) = EMV/(1+r)
2

Time Weighted Return (TWR) = {(1+r1) * (1+r2)} 1
r1 Interval return upto the
contribution
= (MVBC BMV)/BMV

r2 - Interval return including
contribution until the end of the
period
= (EMV MVIC)/MVIC

Modified Dietz Method = RM Dietz = {EMV BMV CF}/{BMV + i=1 ton Wi * CFi}
Wi = (CD Di)/CD
CAGR = {Ending Value/Beginning Value}
(1/no. of years)
1
Sharpe Ratio = (Ravg Rf)/p
Treynor Ratio = (Ravg Rf)/
Alpha = Return of the portfolio - Expected Return
FV = PV*((1+r/m)^(m*t))
Market Capitalization (using free
float)
= Market Price * Number of Outstanding Shares * Free Float Factor
Earnings Per Share (EPS) = Profit After Tax (PAT)/Total no. of Equity Shares (Issued)
Price to Earnings Ratio (P/E Ratio) = Market Price of the Share/Earnings per Share (EPS)
Dividend Yield (%) = [Dividend per Share/Market Price of Share]*100
Volatility (%) = [(Highest Price of Share Lowest Price)/Market Price of
Share]*100
Book Value of Share = (Equity Share Capital + Reserves)/Total no. of Equity Shares
(Issued)
Beta() = Covariance(Index, Stock)/Variance(Index)
Returns = (Value today - Value of the previous day)/Value of the previous
day
Maintenance margin = (Value of your money (equity) / Market value of investment)
Current Yield = (Annual Coupon / Market Price)*100

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Wealth Management

Annualized Coupon [1+r/m]
m
- 1
Bond Price Bond Price = C / (1 + r /m )^m*t
C=Coupon or Cashflows
r=YTM
m=Number of times compounding happens in a
year t=Time period in years
Repo Repurchase price Funds received + Interest paid for the
term/Quantity of Bonds


Present Value of an Annuity

A = RC * i * (1+i/m)
m
*
t
/ [(1 + i/m)
m*t
1]
Where A is the amount he will receive each compounding period
post retirement, to meet his expenses.

Future Value of an Annuity

A = (RC *i/m) / [ (1+i/m)
m*t
1 ]
Where A is the amount he needs to invest from today each
compounding period, to achieve the corpus