Understanding the Approximate Expected Return Equation 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. Stock 1 Stock 2 $1.20 $2.90 $55 $112 567 3139 Average annual dividends (over three years) Current stock price Projected future stock price (in three years) Average annual current income (CI) Average annual capital gains (CG) Average value of the investment (VD) Next, derive the correct formula for approximate expected return by correctly arranging these three variables in the equation that follows Approximate Expectod Return Using this formula, vou can see that the approximate expected return for Stock tis and the approximate expected return for stock 2 is