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(Solved): Understanding the Approximate Yield Equation The formula for the approximate yield of an investmen ...
Understanding the Approximate Yield Equation The formula for the approximate yield of an investment can look intimidating, but it's really just a function of three things: (1) average current for the two stocks over a 3-year period and enter the values into the bottom half of the table.
Approximate Yield \( = \) and the approximate yield for Stock 2 is Using this formula, you can see that the approximate yield for Stock 1 is True or False: If both investments carry the same rate of risk, Stock 2 is a better investment than Stock 1. True False
Expert Answer
In this Calculation of (1) average current income (2) Average capital gains, and (3) The average value of the investment. Stock 1 Stock 2 Expected ave