InvestorQ : What do you mean by an economic yield?
Ria Roy made post

What do you mean by an economic yield?

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Mahil Khan answered.
2 months ago
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Yield denotes the income (in percentage terms) that is generated by an investment. It is typically expressed on an annual basis as a percentage of the investment’s cost or current market value.

Yield is applied to a number of stated rates of return on stocks, fixed income instruments, and other investment type insurance products.

Yield only looks at income, i.e. the dividend or interest earned, and ignores capital gain. 

Yield is one part of the total return of holding a security. A high yield gives owners a chance to recover their investment sooner (reducing risk). 

Yield may be considered known or anticipated depending on the security in question, as certain securities may experience fluctuations in value.
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