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How Does the Capital Gains Yield Formula Work?
The formula for Capital Gains Yield (CGY) is:
Capital Gains Yield = [(Ending Price - Beginning Price) / Beginning Price] × 100
This formula calculates the percentage increase in the price of an asset over a specific period, offering valuable insights into the growth of an investment.
Why Use a Capital Gains Yield Calculator?
Using a calculator simplifies the process of determining the capital gains yield, saving time and effort while ensuring accuracy. This tool is beneficial for:
- Assessing investment performance
- Comparing the profitability of different assets
- Making informed investment decisions
Steps to Calculate Capital Gains Yield
Follow these simple steps:
- Input the beginning price of the asset.
- Enter the ending price of the asset.
- Apply the formula or use a reliable online calculator.
Benefits of Understanding Capital Gains Yield
Knowing the capital gains yield helps investors:
- Identify high-performing investments
- Plan strategies for portfolio growth
- Maximize potential returns while minimizing risk
