The correct answer is: A. capital gain
Capital gains yield is a measure of the return on an investment that is realized when the asset is sold for more than its purchase price. It is calculated by dividing the capital gain (the difference between the purchase price and the sale price) by the beginning price.
For example, if you buy a stock for $100 and sell it for $110, your capital gain is $10. Your capital gains yield is $10 / $100 = 0.10, or 10%.
Capital gains yield is a useful measure of investment performance, but it is important to note that it does not take into account the time value of money. In other words, a $10 capital gain on a $100 investment is not the same as a $10 capital gain on a $1,000 investment.
The other options are incorrect because:
- B. growth gain is not a standard measure of investment performance.
- C. regular yield is a measure of the income that an investment generates, such as dividends or interest.
- D. variable yield is a measure of the volatility of an investment’s returns.