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Hi Hewitt,
I was referring to your portfolio numbers which must agree with the formula ER = (1-PIV)/PIV.
To get the best numbers, you need to use weighted numbers.
I guess the other point is that you don't need two screening limits as they are not independent. IE: You need to set a limit of PIV of NO MORE THAN or ER of NOT LESS THAN but not both.
Anyway I hope I haven't confused things.
PS: See TMF Slydo's posts where he has a sample portfolio and the PIV of the portfolio is 75%. He shows the mean ER is 40.9% but the real number to use is the ER weighted to Price and this gives you 33%. So if he was happy with that portfolio, his criteria for new investments is PIV LESS THAN 75% PERIOD. He doesn't need to say ER GREATER THAN 33%.
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