R41 equation, derived, second, Thank

DoubleDip

CFA Text V5, P356, second last paragraph, under the equation (7)

"We can show that ............. Nf*q/(1+Dividend Yield)^T units of stock"

Anyone know how Nf*q/(1+Dividend Rate)^T is derived ? Thank you in advance !

Valores

cpk123 Wrote:
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> try reading the paragraphs before and after. If
> there is a derivation CFAI wants you to understand
> - they make sure they derive it or provide an
> explanation. In this case - I do not think the
> derivation is important.

Thank you for your response !
I just like to know how to derive it so that I don't have to memorize it.
Regretfully, I don't get it even after my reading the paragraphs before and after.

Anyone can help ?

mar350

try reading the paragraphs before and after. If there is a derivation CFAI wants you to understand - they make sure they derive it or provide an explanation. In this case - I do not think the derivation is important.

CP

wake2000

Abyone can help ?