Different formula for "Investment Yield" in MSA Legend vs. CCIR Instructions

jxtang97jxtang97
in MSA.Ratios

Hi Graham,

Could you kindly explain why the two formulas for Investment Yield are different, and which one we should use under what circumstances on the exam?

Investment yield from CCIR Instructions:

Investment yield from MSA Legend

De-ciphering the MSA legend formula above, the denominator seems to be an average of the cells i have highlighted below, from page 20.10:

Comments

  • Staff-T1Staff-T1
    edited August 15

    It is just a different way of calculating the same thing. You can use either method in an exam, although usually they will only provide enough information to use one or the other. In the event that there is enough information for both methods, either will be accepted

  • jxtang97jxtang97

    Thanks!

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