approximate yield. This value makes it easier for you to compare investment options.

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 income, $(2)$ average capital gains, and $(3)$ the average value of the investment. Based on the information in the table, compute each of these values for the two stocks over a $3-$year period and enter the values into the bottom half of the table.