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) $ $ $ Approzimate Yield = Stock 1 $1.00 $55 $67 $ $ $ Using this formula, you can see that the approximate yield for Stock 1 is Stock 2 $2.70 Next, derive the correct formula for approximate yield by correctly arranging these three variables in the equation that f $117 $147 and the approximate yield for Sto True or False: For these investments to be equally attractive, Stock 2 must carry lower risk than Stock 1.
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) $ $ $ Approzimate Yield = Stock 1 $1.00 $55 $67 $ $ $ Using this formula, you can see that the approximate yield for Stock 1 is Stock 2 $2.70 Next, derive the correct formula for approximate yield by correctly arranging these three variables in the equation that f $117 $147 and the approximate yield for Sto True or False: For these investments to be equally attractive, Stock 2 must carry lower risk than Stock 1.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
How do I calculate those numbers
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CENGAGE MINDTAP
Ch 12: Assignment - Investing in Stocks and Bonds
income, (2) average capital gains, and (3) the average value of the investment. Based on the information in the table,
for the two stocks over a 3-year period and enter the values into the bottom half of the table.
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 =
f5
f6
O
./
Using this formula, you can see that the approximate yield for Stock 1 is
f7
$
Next, derive the correct formula for approximate yield by correctly arranging these three variables in the equation that fo
fg
$
$
+
Stock 1
$1.00
$55
$67
True or False: For these investments to be equally attractive, Stock 2 must carry lower risk than Stock 1.
fg
hp
K
$
a
f10
Stock 2
$117
▶11
$147
and the approximate yield for Stoc
P
f12
63°F
ins
prt sc
C
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