Finance-Formula Summary
Finance Formula Summary 1. Total Dividend Total Dividend = Dividend Per Share × Number of Shares Where: - Dividend Per Share = dividend paid for one share - Number of Shares = number of shares owned...
Finance-Arithmetic Mean vs. Geometric Mean Return
Finance Arithmetic Mean vs. Geometric Mean Return This example shows why arithmetic mean return and geometric mean return can give very different answers even when they are calculated from the exact...
Finance-Converting Simple Return to Continuously Compounded Return
Finance Converting Simple Return to Continuously Compounded Return The easiest way to understand the relationship between a simple return and a continuously compounded return is to remember that they...
Finance-Multiperiod Returns
Finance Multiperiod Returns A multiperiod return is simply the return you earn over more than one period. A period could be one day, one month, or one year. So if you hold an investment for 5 years,...
Finance-Continuously Compounded Returns
Finance Continuously Compounded Returns A continuously compounded return, written as r, is simply another way of expressing the gain or loss from an investment. It describes the same investment result...
Finance-Simple Returns
Finance Simple Returns A simple return, written as R, tells us how much an investment gained or lost during a certain period compared with the amount invested at the beginning. In very simple terms,...