Expected average annual dividends (2012-2014) Current stock price Expected future stock price (2014) Average current income (CI) Average capital gains (CG) Average value of the investment (VI) Approximate Yield = False LA True LA 10 WA Stock 1 $1.00 $70 $82 Next, derive the correct formula for approximate yield by correctly arranging these three variables in the equation that follows. nume h Using this formula, you can see that the approximate yield for Stock 1 is 69 $ Stock 2 $2.70 $101 $125 E 19 E CLETE AE CAND True or False: If both investments carry the same rate of risk, Stock 2 is a better investment than Stock 1. and the approximate yield for Stock 2 is

Next, derive the correct formula for approximate yield by correctly arranging these three variatiles in the equation that follows. Using thls formula, you can see that the approximate vield for stock 1 is and the approximate yield for stock 2 is frue or falie: If both investrients carrv the same rate of ris, Stock 2 is a better invetinent than 5 tock 1. Fise True