ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the amount of dividends you receive in a year
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the amount of return or interest in a year divided by the amount invested
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Either A or B
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None of the above
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Detailed explanation-1: -Yield is a return measure for an investment over a set period of time, expressed as a percentage. Yield includes price increases as well as any dividends paid, calculated as the net realized return divided by the principal amount (i.e. amount invested).
Detailed explanation-2: -Quick Answer. Annual Percentage Yield (APY) is the amount you actually stand to earn in a year on an account that pays interest, like a savings account or CD. APY adds compound interest to your interest rate to show how much interest you’ll make as your money grows.
Detailed explanation-3: -Yield refers to how much income an investment generates, separate from the principal. It’s commonly used to refer to interest payments an investor receives on a bond or dividend payments on a stock. Yield is often expressed as a percentage, based on either the investment’s market value or purchase price.
Detailed explanation-4: -The average annual yield is the income received from an investment divided by the length of time the investment is owned. An average annual yield is a beneficial tool for analyzing the return on floating-rate investments.
Detailed explanation-5: -Yield is a figure that shows the return you get on a bond. The simplest version of yield is calculated by the following formula: yield = coupon amount/price. When the price changes, so does the yield.