Return versus Yield

Fundamentals of Market Investing by Adam J. McKee

You can think of yield as a component of your return on an investment.  The return factors in all sources of gains, including a rise in share prices.  Since share prices are volatile and based largely on the whims of traders at any given moment, you can expect more volatility in an investment’s return than in its yield.  Note that as with most things on Wall Street, the return is always for a past period, and the future may be very different from the past.


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