Capital gains yield (CGY) is the price appreciation on an investment or a security expressed as a percentage.
Investors calculate a security’s CGY because the formula shows how much the price fluctuates. This helps an investor to decide which securities are a good investment.
Formula to calculate capital gain yield.
Suppose the original price of a commodity was $50, currently the commodity is worth $ 60. Calculate the capital gain yield.
Thus, the capital gain yield is 20 %.