FORMULAS Price = (P/E) EPS V. - DVD/Kg): - E- E) PE) - PE - (learning yield); V. - (D) . E{P.) A-WAS-JE: S - [Ep) - Pas-Cov.AVOA Cov A) - PARDA: Capital Gain yield (Po-PayPJ: Dividend yield DIVP. HPR = f(Ps - Ps). DivP.: HPR - Capital Gain Yield Dividend Yield Arithmetic Average = Sum of returns in each period divided by number of periods Geometric Return = (1+r)*(1+r)... (1+r.] - 1. Ern) -WER-RE Your investment has a 40% chance of earning a 20% rate of return, a 50% chance of earning a 10% rate of return and a 10% chance of losing 3%. What is your expected rate of return? O 13.0% O 10.09 O 10.7% O 12.7%