Yield refers to the earnings generated and realized on an investment over a particular period of time.
Expressed as an annual percentage, the yield tells investors how much income they will earn each year relative to the cost of their investment.
Formula to calculate yield.
Formula to calculate yield.
If the annual income of an investment is $ 80,000 and the investment’s value is 120,000. Calculate the yield.
Therefore, the investment’s yield is 80%.
