Understanding Investment Yields

What is the primary difference between yield and return on investment (ROI)?

• Yield is calculated monthly, while ROI is annual.

• ROI is always higher than yield.

• Yield is the income generated by an investment, while ROI is the profit or loss.

• Yield includes capital gains, while ROI does not.

Which of the following is NOT a type of yield mentioned in the video?

• Capital yield

• Yield to maturity

• Dividend yield

• Current yield

How do you calculate the yield of a bond with a $50 annual coupon and a market price of $900?

• Divide $50 by $900 and multiply by 100

• Divide $900 by $50 and multiply by 100

• Multiply $50 by $900 and divide by 100

• Add $50 to $900 and divide by 100

What is the annual income from a stock that pays a quarterly dividend of $1?

• $2

• $3

• $1

• $4

If a stock's annual dividend is $4 and its price is $100, what is the dividend yield?

• 2%

• 3%

• 4%

• 5%