Western Governors University (WGU) FINC6000 C214 Financial Management Practice Exam

The term that refers to the return gained on an investment over a specified period, commonly expressed as a percentage, is yield. Yield provides investors with a way to gauge the earnings generated from an investment relative to its cost or current market value. In financial analysis, yield can be pivotal for comparing different investment opportunities, as it indicates how effectively an investment has performed over time.

This term is often used in contexts such as bonds, stocks, and other investments where income is generated. Yield helps investors assess their investment's productivity and make informed decisions about where to allocate resources to achieve the best potential returns.

In contrast, growth generally refers to an increase in the value of an investment or a company over time, but it does not necessarily provide a percentage return. Return on equity specifically measures a company's profitability relative to shareholders' equity, and net profit margin indicates the percentage of revenue that constitutes profit but is more about operational efficiency than investment return.