Enter the default point ($), the market value of assets ($), and the asset volatility (%) into the EDF Calculator. The calculator will evaluate the EDF.
EDF Formula
The following formula is used to calculate the EDF.
EDF = DP / MVA * AV
Variables:
- EDF is the EDF (%)
- DP is the default point ($)
- MVA is the market value of assets ($)
- AV is the asset volatility (%)
How to Calculate EDF?
The following steps outline how to calculate the EDF.
- First, determine the default point ($).
- Next, determine the market value of assets ($).
- Next, determine the asset volatility (%).
- Next, gather the formula from above = EDF = DP / MVA * AV.
- Finally, calculate the EDF.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem:
Use the following variables as an example problem to test your knowledge.
default point ($) = 50,000,000
market value of assets ($) = 70,000,000
asset volatility (%) = .75
EDF = DP / MVA * AV = ?
