Income return in Grinold-Kroner model
Made a mistake in a mock review that’s been bugging me because I made the same mistake 2 months ago…
The income return = div yield + repurchase yield
Is it safe to say that we should add whatever value of the repurchase yield is given?
E.g: if the repurchase yield is -2%, div yield is 3%, then the income yield is 1%.
If the repurchase yield is 2%, div yield is 3%, then income yield is 5%.
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