How to calculate market index ratio
Sharpe ratio is one of the most commonly used ratios to measure the reward versus risk of an investment opportunity. In this article, we will learn about what Sharpe Ratio is, how it is calculated, and how to calculate the Sharpe Ratio of Portfolio in Excel using MarketXLS. To calculate the Herfindahl Index, you'll need to know the market share for each company that's competitive in the market in question. Square the market share of each company, then add together each result. The resulting sum is the Herfindahl Index. For example, mortgage lenders typically value property at a discounted rate of 80% of fair market value (FMV) and offer loans with a minimum collateral coverage ratio of one, or an 80% loan-to-value (LTV). Collateral Coverage Ratio Formula. Calculating the collateral coverage ratio is relatively simple.