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 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 Stock2 Expected average annual dividends (2012-2014) Current stock price Expected future stock price (2014) $1.15 $60 $81 $2.85 $115 $142 Average current income (CI) Average capital gains (CG) Average value of the investment (VI) Next, derive the correct formula for approximate yield by correctly arranging these three variables in the equation that follows. Approximate Yield = Avg. CG Avg. CI + Avg VI Avg. VI Avg. CI Avg. VI + Avg CG Avg. CI + Avg CG Using this formula, you can see that the approximate and the approximate yield for