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Finance

Finance mixes definitions and formulas you have to know before you start calculating. Lumi quizzes you on the concepts and on the logic behind each formula.

How to turn this subject into cards

Make one note per concept, discounting, net present value, risk, bonds, CAPM, with the formula, what each symbol means and the direction of change. Quiz yourself on the why, for example why bond prices fall when rates rise. The trap is memorising the formula without the intuition and then getting a sign wrong. Lumi helps you retain definitions, formulas and relationships.

Example card

Try it, Lumi turns it into fill in the blank questions in your browser.

study-card.txt

Finance · teach this card to Lumi

Net present value discounts future cash flows to today using a required rate of return. The CAPM links expected return to the risk-free rate plus beta times the market risk premium. Bond prices fall when interest rates rise. Diversification reduces unsystematic risk but not systematic risk.

Lumi’s question

Net present value _____ future cash flows to today using a required rate of return.

Pick the missing word

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Teach this to Lumi

Give Lumi your finance notes, it gives them back as questions at the right moment.

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