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# CIMA

## Level I Exam Formula Sheet

Alpha:
Beta:
Bond Price:
Bond Value:
CAPM:
Capital Allocation Line through portfolio P:
Capital Market Line:
Correlation:
Covariance:
Covariance:
Derived forward rate for one period at time t:
Dollar weighted return
Effective annual rate:
Estimated bond price change:
The following is a list of formulas for use on the Level I CIMA Exam (memorization is not necessary, but students must be able to
recognize and perform calculations for exam success). The formulas presented on this sheet may be presented in a different
format during your Level II coursework (for example, capital letters or reverse order.) The formulas on this sheet are based on the
textbook and math module used for the Level I. Level II professors and study material may use alternative formulas for Level II
classes. It is important that candidates learn to read a formula and recognize it in different formats.

Expected portfolio return:
Expected portfolio standard deviation:
Expected return:
Variance:
Forward exchange rate:
Forward price:
Future value:
Geometric average return:
Holding period return:
Information Ratio:
Macaulay duration:
Modified duration:
Modigliani squared:
Normal position return:
Portfolio beta:
Portfolio duration:
Sample Formula Sheet for CIMA

Certification
Page 1 of 2
Expected portfolio return:
Expected portfolio standard deviation:
Expected return:
Variance:
Forward exchange rate:
Forward price:
Future value:
Geometric average return:
Holding period return:
Information Ratio:
Macaulay duration:
Modified duration:
Modigliani squared:
Normal position return:
Portfolio beta:
Portfolio duration:
Portfolio standard deviation (two assets):
Portfolio variance:
Present value:
Real rate of return:
Relationship between T-period spot rate and forward rate:
Sharpe ratio:
Standard deviation:
Treynor ratio:
Value added from active asset allocation
Value added from asset selection decision:
Variance:
Portfolio standard deviation (two assets):
Portfolio variance:
Present value:
Real rate of return:
Relationship between T-period spot rate and forward rate:
Sharpe ratio:
Standard deviation:
Treynor ratio:
Value added from active asset allocation
Value added from asset selection decision:
Variance:
Portfolio standard deviation (two assets):
Portfolio variance:
Present value:
Real rate of return:
Relationship between T-period spot rate and forward rate:
Sharpe ratio:
Standard deviation:
Treynor ratio:
Value added from active asset allocation
Value added from asset selection decision:
Variance:
Portfolio standard deviation (two assets):
Portfolio variance:
Present value:
Real rate of return:
Relationship between T-period spot rate and forward rate:
Sharpe ratio:
Standard deviation:
Treynor ratio:
Value added from active asset allocation
Value added from asset selection decision:
Variance:
Sample Formula Sheet for CIMA

Certification
Page 2 of 2
Portfolio standard deviation (two assets):
Portfolio variance:
Present value:
Real rate of return:
Relationship between T-period spot rate and forward rate:
Sharpe ratio:
Standard deviation:
Treynor ratio:
Value added from active asset allocation
Value added from asset selection decision:
Variance:
Portfolio standard deviation (two assets):
Portfolio variance:
Present value:
Real rate of return:
Relationship between T-period spot rate and forward rate:
Sharpe ratio:
Standard deviation:
Treynor ratio:
Value added from active asset allocation
Value added from asset selection decision:
Variance:
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Association
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and Certifed Investment Management Analyst
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are service
marks of Investment Management Consultants Association Inc. and denote the
highest quality of standards and education for fnancial professionals. CIMA
and CIMC are registered certifcation marks of Investment Management
Consultants Association Inc. Investment Management Consultants Association
Inc. does not discriminate in educational opportunities or practices on the
basis of race, color, religion, gender, national origin, age, disability, or any other
characteristic protected by law.
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