Understanding the returns from investing When buyng stock, you can expert to eam money through future current income (trom 1. Together, your total earnings from a given livestment con be expressed in torms of the appreciation (trom approximate yleld. for you to compare investment options. Understanding the The formuta for the approximate yield of an injestment con look intimidating, but it's really just a function or three things: (1) average cirrebt income, (2) average capital gains, and (3) the gverage value of the investment. Based on the information in the table, cortopute each of these values for the two stocks over is 3 -year period and enter the values into the bottom baif of the table Nent, dentie the correct formuia for approximate viela by correctly arranging thase three variobles in the equation that follows. Approximate Yield = Using this formula, you con spe that the approximate yield for Stock 1 is and the spproximate yeld for stock 2 is True of False: inboth investments carry the same rate of risk, stock 2 is a better investment, than stogk 1 When buying stock, you can expect to earn money through future current income (from 1. Together, your total earnings from a given investment can be expressed in terms of the appreciation (from approximate yield. for you to compare investment options. Understanding the tion The formula for the approyimate 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. ables in the equation that follows. Using this formula, you can see that the approximate yied for Stock 1 is and the approximate viedd for stock 2 is True or False: If both investments carry the same rate of risk, Stock 2 is a better investment than Stock 1. True Falset