List obscure concepts/ formulas that are good to know
- Thread starter danv0330
- Start date
thegeneral101
New member
- May 23, 2012
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Probably the two estate tax formulas. Estate tax taxable and capital gains.
robably the two estate tax formulas. Estate tax taxable and capital gains.
I think :
- Taxes (also RV of gifts)
- Equivalen tax rate ( I mean when you aggregate Income, Capital & Wealth taxes)
- Tax source residence methods (credit, exemption, deduction methods)
- All of the CME formulas ( fed/ yardeni / CAPE )
- Equity Market Valuation ( Cobb Douglas)
- Grindol formula for return
- Singer formula ( market integration / segmentation)
- Formulas to calculate # titles of futures for equity / bonds ( yield beta , conversion factor ) / swaps ( the notional of the swap)
- Effective Interest Rate when using options
- Return of a leveraged portfolio
- Duration of a leveraged portfolio
- Payoffs of strategies with derviatives ( so you can calculate all the questions of maximum profit etc)
- Return of investing in commodities futures ( so you understand roll / underlying and collateral return)
- Utility funcion ( return - risk aversion parameter *.005* standard deviation)
- All RAPM ( sortino ratio, treynor , jensen alpha, M2) etc
- Taylor rule (always remember that you use target & trend - forecast ( for each, inflation and GDP), dont get a mistake by getting confused in what is negative and which is the positive, remember to add the neutral rate.
- The 3 micro performance attribution formulas ( selection, allocation & interaction)
- Macro performance attribution formula ( you know risk free rate + net contributions +…)
- VWAP & Implementation shortfall formulas ( hhfggg)
- Effective spread formula ( this is silly but remember to multiply by 2)
- Not a formula but the concept regarding the CPPI, constant mix & buy and hold strategies in rebalancing.
I will update this if i remember some more.
I think formulas-questions have to be a “no brainer” for us. Its just memorizing, I know is difficult but c’mon in one full day we all can make it!! I mean, imagine you studied 5 - 6 months and you get a question wrong just because you didnt give you the time to memorize an stupid formula!! In 15 days we must make a compromise to memorize all of the f** formulas!!
Jorge
- Taxes (also RV of gifts)
- Equivalen tax rate ( I mean when you aggregate Income, Capital & Wealth taxes)
- Tax source residence methods (credit, exemption, deduction methods)
- All of the CME formulas ( fed/ yardeni / CAPE )
- Equity Market Valuation ( Cobb Douglas)
- Grindol formula for return
- Singer formula ( market integration / segmentation)
- Formulas to calculate # titles of futures for equity / bonds ( yield beta , conversion factor ) / swaps ( the notional of the swap)
- Effective Interest Rate when using options
- Return of a leveraged portfolio
- Duration of a leveraged portfolio
- Payoffs of strategies with derviatives ( so you can calculate all the questions of maximum profit etc)
- Return of investing in commodities futures ( so you understand roll / underlying and collateral return)
- Utility funcion ( return - risk aversion parameter *.005* standard deviation)
- All RAPM ( sortino ratio, treynor , jensen alpha, M2) etc
- Taylor rule (always remember that you use target & trend - forecast ( for each, inflation and GDP), dont get a mistake by getting confused in what is negative and which is the positive, remember to add the neutral rate.
- The 3 micro performance attribution formulas ( selection, allocation & interaction)
- Macro performance attribution formula ( you know risk free rate + net contributions +…)
- VWAP & Implementation shortfall formulas ( hhfggg)
- Effective spread formula ( this is silly but remember to multiply by 2)
- Not a formula but the concept regarding the CPPI, constant mix & buy and hold strategies in rebalancing.
I will update this if i remember some more.
I think formulas-questions have to be a “no brainer” for us. Its just memorizing, I know is difficult but c’mon in one full day we all can make it!! I mean, imagine you studied 5 - 6 months and you get a question wrong just because you didnt give you the time to memorize an stupid formula!! In 15 days we must make a compromise to memorize all of the f** formulas!!
Jorge