Investor Excel Formulas — Advanced (Why + How + Steps) Investor Excel Formulas — Advanced This page upgrades your toolkit: disciplined underwriting blocks, promote waterfalls, scenario engines, spatial/DID hooks, and portfolio diagnostics. Each module explains why it matters, when to deploy, and how to build it in Excel. 1) Underwriting Blocks (inputs → drivers → … Read more
Investor Excel Formulas — Beginner (Why + How + Steps) Investor Excel Formulas — Beginner This page teaches the core blocks you’ll actually use: NPV/IRR, loans & DSCR, rent schedules, and lookups. For each block you’ll see why it matters, when to use it, and exact steps to build it in Excel. 1) Project Evaluation … Read more
Financial Calculator Finding NPV and IRR — BA II Plus Clear keystrokes for NPV and IRR, with extra student-friendly guidance and a simple Excel-style table for checks. Example Cash Flows (Annual) Discount rate: 10% Year Cash Flow Frequency Notes 0 −12,000 1 Initial investment (negative) 1 +5,000 1 Inflow 2 +6,000 1 Inflow 3 +3,000 … Read more
Basic Interpretation of Risk — Standard Deviation Basic Interpretation of Risk — Standard Deviation Risk Volatility Standard Deviation What is Meant by “Risk” Here? Risk in returns is the amount of variability around an asset’s typical (average) return. The wider and more frequent the swings away from the average, the riskier the asset is considered … Read more
Foundations of Capital Markets & Real Estate Finance — Outline and Notes Foundations of Capital Markets & Real Estate Finance Capital Markets Real Estate Finance Debt vs Equity Financial Intermediaries Key Outline What finance is: the process that channels savings into cash-flow–generating investments; how money flows from savers to firms/projects. Why finance is needed in … Read more
PV, NPV, and IRR Definitions, plain-text formulas, and decision rules for investment analysis. 1) Present Value (PV) Idea: a dollar today is worth more than a dollar tomorrow; discount future cash flows to today’s dollars using an appropriate rate. Single cash flow: PV = Future cash / (1 + r)^n Ordinary annuity (equal payments, end … Read more
Key Financial Ratios & Real Estate Metrics — Quick Guide 1) Core Profitability Measures EBITDA — operating cash-flow proxy before capital structure and taxes. Formula (text): EBITDA = Net income + Interest + Taxes + Depreciation + Amortization EBIT — operating income before interest and taxes. Formula: EBIT = Net income + Interest + Taxes … Read more
SML and Beta — Educational Summary (Text-Only) 1) Why SML & Beta Are Important The Security Market Line (SML) links an asset’s expected return to its exposure to systematic (market) risk, measured by beta. Its intercept is the risk-free rate and its slope is the market risk premium. You use the SML to estimate the … Read more
One Risky Asset + One Risk-Free Asset, and SML vs CML (Text-Only) Risk & Return — One Risky Asset with One Risk-Free Asset, plus SML vs CML 1) Core Principle: Risk and Return Risk and return move together. Investors are generally risk-averse, so they require a higher expected return to hold more risk. Diversification can … Read more
Risk, Return & CAPM: A Visual Guide Decoding Investment A Visual Guide to Risk, Return, and CAPM The Fundamental Trade-Off In finance, risk and return are intrinsically linked. To achieve higher potential returns, an investor must be willing to accept a greater level of uncertainty. This principle governs all investment decisions. Low Risk ⟶ High … Read more