Repurchase yield Grinold K

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MissYiota

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This really bother me. How do we exactly compute the sign of the repurchase yield in the Grinold Kroner formula?
When it is given as expected repurchase yield 1%
that means it is given positive right? So in the formula, shouldnt it be computed as a negative value, thus entered as -1% ?
In this CFA question, they say
Shares outstanding will decline 1.00%.
and in the response they put -(-1%)
In another question still CFA, they say
Expected repurchase yield 1% and there also, answer is -(-1%)
So now Im confused.
When is it -(1%) and when -(1%) ?
 
in actual formula its negative.
But if the question says that the company will repurchase 1% of its shares that it becomes positive -(-1%) and vice versa
 
If the question gives a positive repurchase yield, you add it. If the question says that the shares outstanding increased by 2%, you subtract. Shares outstanding going down means the investor is EARNING a repurchase yield.
 
Actual formula has “- change in number of shares outstanding”.
Positive repurchase means outstanding shares will decrease.
- ( - change in S) = +change in S
 
If it says repurchase yield, keep it positive (or negative) and add it to the equation. So if the question says a -4% repurchase yield, just know that this would lower the expected return. However, if it says 4% of shares are repurchased, than this is a positive yield, which increases expected return.
 
In this CFA question, they say
Shares outstanding will decline 1.00%.
and in the response they put -(-1%)
In another question still CFA, they say
Expected repurchase yield 1% and there also, answer is -(-1%)
So now Im confused.
When is it -(1%) and when -(1%) ?
 
Positive Repurchase yield=decrease in number of shares outstanding
They both mean the same thing. You have to adjust the sign depending on which input you are given.
 
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