EXCEL STATISTICAL CHEAT SHEET
Name of Function Brief Explanation Formula In Excel
HPR (Holding Period Determines the total return earned from holding Type in the formula in a cell as
Return) an investment for a period of time. stated
(Actual Return)
= Beginning Price
= Ending Price
Arithmetic Mean Commonly called the ‘average’ Go to Paste Function >
Statistical> AVERAGE
(Average Return) Measure of central tendency =
= Return in year i
Geometric Mean Alternative measure of mean, which is Go to Paste Function >
particularly applicable when the average rate of Statistical> GEOMEAN
growth is to be measured. =
(Compound Average
Return)
= Return in year n
Note: Only applicable if x >0
Variance Statistically, measure of association. Go to Paste Function >
Financially, measure of risk and uncertainty on Statistical> VAR
the returns of an asset.
Standard Deviation Statistically, measure of association. Go to Paste Function >
Financially, measure of risk and uncertainty on Statistical> STDEV
the returns of an asset.
Covariance Measure of co-movement. It relates how 2 sets Go to Paste Function >
of variables behave in relation to one another. Statistical> COV or
Go to Data Analysis >
COVARIANCE
Correlation Same as covariance but it is units free – easier Go to Paste Function >
to interpret. It is always between –1<ρ <+1. Statistical> CORREL or
Go to Data Analysis >
CORRELATION
Beta Risk of the asset in relation to market, where Type in the formula in a cell as
the market beta is 1 stated
or Go to Data Analysis >
REGRESSION and the result
will be quoted as the coefficient
of X Variable
Weighted Average Each and every individual asset is assigned a Weighted Average Return = Type in the formula in a cell as
Return weighting showing its percentage contribution stated, given the weightings
to a portfolio. provided for you
Variance of a Portfolio Measures the risk of an overall portfolio with Type in the formula in a cell as
of 2 assets two assets. stated, given the weightings
provided for you
© 2002 Hughey Center for Financial Services.
All Rights Reserved.
