A yield calculation that takes into account the total return, the original investment, and the time that the investment is held is called ____________ yield.
A) current
B) dividend
C) annualized holding period
D) capital gain
E) original investment

Question

Quizplus · Accepted Answer

The description given matches the definition of annualized holding period yield, which incorporates both capital gains and income received from the investment over the period it is held. Option A, current yield, only accounts for the income earned from the investment as a percentage of the current market price. Option B, dividend yield, is similar to current yield but applies only to dividend-paying stocks. Option D, capital gain yield, only considers the increase in market value of the investment over the holding period. Option E, original investment yield, is not a commonly used or recognized term.

A Yield Calculation That Takes into Account the Total Return