What is the Difference between yield and Return?
Do not confuse the two terms. Return is sometimes called total return. The formula for total return (ignoring any taxes paid on gains and income during the holding period) is: TR= ((Ending Market Value) / (Beginning Market Value))-1 Yield is a very different number; it is prospective not retrospective. It is a measure of income not capital gains. It is usually associated with debt not equity. For instance, the yield quoted on a bond will almost never be the same as the total return realized after the bond matures or is sold.
