___________ is the measure of return on investments in terms of percentage (a) Yield
(b) Index
(c) Equity
(d) Bonus
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Option A - Yield is the measure of return on investments in terms of percentage.
What is a yield?
- Yield can b defined as the net amount earned for an original investment over a particular time period.
- Yield is the measurement of return of investment in a particular time period. It is also known as ROI - Return on investment.
- It includes the dividends paid, and price increases, calculated as the net amount divided by the principle amount (original investment).
- Generally, it is expressed in the form of a percentage based on the originally invested amount.
- Formula to calculate yield:
Yield = Net Realized Return / Principal Amount
Thus, option (a) is correct.
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