Charta is on Google Play: practise on the go. Get the app
Charta

Free CFA® formula sheet

Every formula on the curriculum for your level, with each symbol defined and a line on when to use it. Laid out to print or save as a PDF.

We use your address to send the sheet and, only if you ticked the box, occasional emails. Every email has a link that deletes your address. See the privacy notice.

What each entry looks like

Holding period return on a share

HPR = (P₁ − P₀ + D₁) ÷ P₀

P₀
the price at the start
P₁
the price at the end
D₁
any cash received over the period

Both sources of equity return in one number, on the money actually put up. Leaving the dividend out understates the return by the dividend yield, which over long periods is most of it.

Price-weighted index

index = Σ Pᵢ ÷ d

Pᵢ
the price of one share of each member
d
the divisor, reset on splits and on changes of membership

One share of each, so a high-priced company moves the index more than a large one. The divisor exists only to stop a split changing the level, and it drifts away from the number of members over time.