Understanding the Approximate Yield Equation The formula for the approximate yield of an investment can look intimidating, but it's really just a function of three things: (1) average current for the two stocks over a 3-year period and enter the values into the bottom half of the table. Approximate Yield = and the approximate yield for Stock 2 is Using this formula, you can see that the approximate yield for Stock 1 is True or False: If both investments carry the same rate of risk, Stock 2 is a better investment than Stock 1. True False