What is analized yield?
annual revenues are an annual increase or decrease in the value of investment based on information that includes time frames other than a single twelve -month period. Factors such as dividend, interest or unrealized recognition payments concerning the entire time framework consider have an impact on the determination of analized yield in terms of a specific year. Although there is some confusion between what is meant by annual revenue and annual revenue, these two conditions are not interchangeable and provide financial data that differ greatly.
In the annual yield, the emphasis is placed on a specific twelve -month period, either a calendar year or twelve consecutive months that can cover parts of two consecutive years. On the other hand, the analized yield requires more periods of time to determine some type of geometric average yield that applies to all periods considered. While the first is the help of assessing revenue for one calendar year provides the second useful data, thereforeE concerns the performance of investment for more than one period.
The annual yield is expressed as a percentage, with this percentage representing an average increase or decrease in the value of the investment for several periods considered. For example, if the return on investment (ROI) comes to twelve percent during the two -year period, then the annual yield would be six percent. This basic analized return formula can also be used to determine the analized yield because it applies to shorter time frames. If the return on investment in one calendar month is two percent, then the annual return of these investments is determined to be twenty -four percent.
One of the advantages of calculating the annual revenue is that it provides a wider picture of an and the performance of N Investment than can be achieved with respect to one year. Depending on the number of periods considered, the investor may find out that the data indicates that the investment,which is currently not doing well, has actually reported a significant average yield over the past few years, despite different rise and market decline. As a result, the investor can find that holding an investment can be a wiser decision that sells it because there is a great chance that it will increase value again and will continue to gain a decent level of return in a longer period of time.