List of Excel Func�ons That May Be Useful on CFE/ERM Exams

Below, find a list of Excel func�ons that may be useful when taking the exams on Corporate Finance and
ERM track (ERM, Founda�ons of CFE, and Strategic Decision Making). This reading is not required, but
ques�ons for this track have been developed assuming candidates are familiar with these Excel
func�ons. Candidates may also use other func�ons. Many �mes, Excel offers mul�ple func�ons and tools
that can be used to perform the same task.

In the descrip�ons below, an array is one-dimensional, while a range can be two-dimensional (mul�ple
rows and columns). Logical values are either True or False. Some Excel func�ons require that the arrays
be in the same direc�on (SUMPRODUCT), but most do not. Other func�on inputs are variables. Some
variables have limita�ons (a value between 0 and 1); others do not.

This document will be available to candidates when taking the exam. An Excel file, accessible on the
exam study page, provides examples of most of the func�ons below. The Excel file will not be available to
candidates during the exam.

AVERAGE(range1, [range2], …) – returns the arithme�c mean of the cells in a range (ignores blank cells)
range1 is the first range, cell reference, or number for which you want in the average
range2, … are addi�onal ranges, cell references, or numbers for which you want to include in the
average

BINOM.DIST(number_s, trials, probability_s, cumula�ve_logical_value) – returns the individual term

binomial distribution probability when there are a fixed number of tests or trials, when the
outcomes of any trial are only success or failure, when trials are independent, and when the
probability of success is constant throughout the experiment
number_s is the number of successes
trials is the number of trials
probability_s is the probability of success for each trial
cumula�ve_logical_value is the logical values that determines the form of the func�on. If TRUE,
the cumula�ve distribu�on func�on is returned, which is the probability that there are at most
number_s successes; if FALSE, the probability mass func�on is returned, which is the probability
that there are number_s successes

BINOM.INV(trials, probability_s, alpha) – returns the smallest value for which the cumula�ve binomial
distribu�on is greater than the criterion value (or the number of successful trials for a cumula�ve
binomial distribu�on based on a criterion value)
trials is the number of trials
 probability_s is the probability of success for each trial
alpha is a criterion value from 0 to 1 that determines the number of successful trials

CORREL(array1, array2) – returns the correla�on coefficient of two data sets

array1 is an array of cell values
array2 is a second array of cell values

COUNTIF(range1, criteria) – returns the number of cells in a given range that meet the criteria
range1 is a range of cells that could include values or formula results
criteria is the criteria to be met such as “>0” or “=15”

COVARIANCE.P(array1, array2) – returns the popula�on covariance, the average of the products of
devia�ons for each data point pair in two data sets (for a complete popula�on, uses N in the
denominator)
array1 is the first array of cell values
array2 is the second array of cell values

COVARIANCE.S(array1, array2) – returns the sample covariance, the average of the products of
devia�ons for each data point pair in two data sets (for a sample, uses N-1 in the denominator)
array1 is the first array of cell values
array2 is the second array of cell values

MMULT(range1, range2) – returns the matrix product of arrays into an range with the same number of
rows as range1 and the same number of columns as range2
range1 and range2 contain the arrays to be mul�plied. The number of columns in range1 must
be the same as the number of rows as range2, and both ranges must contain only numbers. As
an example, if both ranges are 2x2, the top le� cell in the output will equal the sumproduct of
the array in the top row in the first range and the array in the le� column of the second range. To
produce the output, the range of the output table must be highlighted, then the formula
entered, and then cntl/shi�/enter hit

NORM.DIST(x, mean, standard_dev, cumula�ve_logical_value) – returns the normal distribu�on for the
specified mean and standard devia�on
x is the value for which you want the distribu�on
mean is the arithme�c mean of the distribu�on
standard_dev is the standard devia�on of the distribu�on
 cumula�ve_logical_value is the logical value that determines the form of the func�on. If TRUE,
the cumula�ve distribu�on func�on is returned; if FALSE, the probability density func�on is
returned

NORM.INV(probability, mean, standard_dev) – returns the inverse of the normal cumula�ve

distribu�on for the specified mean and standard devia�on
probability is a probability corresponding to the normal distribu�on (a number between zero
and one inclusive)
mean is the arithme�c mean of the distribu�on
standard_dev is the standard devia�on of the distribu�on

NORM.S.DIST(z, cumula�ve_logical_value) – returns the standard normal distribu�on (has a mean of

zero and a standard devia�on of one)
z is the value for which you want the distribu�on.
cumula�ve_logical_value is the logical value that determines the form of the func�on. If TRUE,
the cumula�ve distribu�on func�on is returned; if FALSE, the probability mass func�on is
returned

NORM.S.INV(probability) – returns the inverse of the standard normal cumula�ve distribu�on (has a
mean of zero and a standard devia�on of one)
probability is a probability corresponding to the normal distribu�on (a number between zero
and one inclusive)

PERCENTILE(range, k) – returns the kth percen�le of the values in a range, interpola�ng if necessary
range is the array or range of data from which the percen�le should be found; the data does not
need to be sorted
k is the percen�le value in the range 0 to 1 inclusive. 0 returns the lowest value; 1 returns the
highest value

RANK(number, range, [order]) – returns the rank of a number in a list of numbers.

number is the number whose rank you want to find
range is the range that includes the list of numbers from which to find the rank of the number
order (op�onal) is ascending when the value is 1 and descending when the value is 0

SQRT(number) – returns a posi�ve square root

number is the number for which a square root is desired
STDEV.P(range1, [range2], …) – calculates standard devia�on based on the en�re popula�on given as
arguments (ignores logical values and text; uses N in the denominator)
range1 is the first range, cell reference, or number corresponding to the popula�on for which
you want the standard devia�on
range2, … are addi�onal ranges, cell references, or numbers corresponding to the popula�on for
which you want to include in the standard devia�on

STDEV.S(range1, [range2], …) – es�mates standard devia�on based on a sample (ignores logical values
and text in the sample; uses N-1 in the denominator)
range1 – is the first range, cell reference, or number corresponding to the popula�on for which
you want the standard devia�on
range2, … are addi�onal ranges, cell references, or numbers corresponding to the popula�on for
which you want to include in the standard devia�on

SUM(range1, [range2]) – adds all the numbers in a range of cells

range1 is the first range, cell reference, or number for which you want to include in the sum
range2, … are the addi�onal ranges, cell references, or numbers for which you want to include in
the sum

SUMPRODUCT(array1, [array2], [array3], …) – returns the sum of the products of corresponding arrays
arrays1, array2, array3,… are 2 to 255 arrays which the user wants to mul�ply and then add
components. All arrays must have the same dimensions, ver�cal or horizontal

TRANSPOSE(array) – converts a ver�cal range of cells to a horizontal range, or vice versa

array is a range of cells on a worksheet or an array of value that the user wants to transpose (for
example, to use in the SUMPRODUCT func�on). When using the TRANSPOSE func�on in another
func�on, the formula must be entered and then cntl/shi�/enter hit. When using the TRANPOSE
func�on to produce output, the range of the output table must be highlighted, then the formula
entered, and then cntl/shi�/enter hit

VLOOKUP(lookup value, table_range, column_ index_number, logical_value) – looks for a value in the
le�most column of a table and then returns a value in the same row from a column specified by the user
lookup_value is the value to be found in the first column of the table. It can be a value, a
reference, or a text string
table_range is a table of text, numbers, or logical values in which data is retrieved
column_index_number is the column number in table_range from which the matching value
should be returned
logical_value is a logical value to find the next lowest match in the first column (must be sorted
in ascending order) when equal to TRUE or omited; or an exact match when equal to FALSE