Formula list for the CFA® Program Level I
A compact list of standard finance formulas in common notation, compiled by Preparaio.
- Future value
- FV = PV × (1 + r)^n
- Present value
- PV = FV / (1 + r)^n
- Annuity present value
- PV = PMT × [1 − (1 + r)^−n] / r
- Perpetuity
- PV = PMT / r
- Holding period return
- HPR = (P1 − P0 + D1) / P0
- Effective annual rate
- EAR = (1 + periodic rate)^m − 1
- Sample variance
- s² = Σ(xᵢ − x̄)² / (n − 1)
- Coefficient of variation
- CV = s / x̄
- Sharpe ratio
- Sharpe ratio = (Rp − Rf) / σp
- CAPM
- E(Ri) = Rf + βi × [E(Rm) − Rf]
- Gordon growth model
- V0 = D1 / (r − g)
- Price-to-earnings
- P/E = price per share / earnings per share
- Current yield
- Current yield = annual coupon / bond price
- Modified duration
- ModDur = MacDur / (1 + yield per period)
- Price change (duration + convexity)
- %ΔP ≈ −ModDur × Δy + ½ × Convexity × (Δy)²
- Return on equity (DuPont)
- ROE = net margin × asset turnover × leverage
- Weighted average cost of capital
- WACC = wd × rd × (1 − t) + we × re
- Put–call parity
- S0 + P0 = C0 + X / (1 + r)^T
Notation follows common textbook usage. Check the current curriculum for the exact scope.
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