Yield
The earnings generated and realized on an investment over a particular period of time, expressed as a percentage of the investment’s cost or current market value.
Systems Engineering Analogy
Energy output per cycle: the immediate dividend or coupon cash flow generated by an asset without consuming the principal machinery.
Mathematical SpecificationDeterministic
Yield = Annual Cash Flow / Current PriceVariables:
Annual Cash Flow:Periodic dividend, coupon, or distribution income generated
Current Price (P):Current market value per unit or aggregate asset price
Featured in: Book 01: The Money Loop