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The formula for the approximate expected return of an investment can look intimidating, but it's really just a function of three things: (1) average annual

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The formula for the approximate expected return of an investment can look intimidating, but it's really just a function of three things: (1) average annual 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. Noxt, derive the correct formula for approximate expected return by correctly arranging these three variabies in the equation that foliows. Appecoximate Bapected Returs = Using this formula, you can see that the approximate expected return for 5tock 1 is and the approximate expected return for S4

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