The formula to calculate the yield percentage is

Question

BlackTom AI · Accepted Answer

To determine the yield percentage, we need to compare what you earn (the end parameter) to what you invested (the start parameter) and express that as a percentage.
Option a. (EP/AP) *100: This expresses the yield as the ratio of EP (ending value or earnings) to AP (initial value or investment) multiplied by 100, which aligns with the standard way to convert a ratio into a percentage. If EP is higher than AP, you get a positive yield; if EP is lower, the yield is negative, which makes intuitive and mathematical sense.
Option b. None of the given choices: This would be correct only if none of the listed formulas matched the standard yield calculation. Since option a matches the conventional form (EP/AP) * 100, this option is not appropriate.
Option c. (AP/EP)*100: This reverses the ratio. It would yield a percentage that scales inversely with the actual performance; it does not represent yield as a return on investment, so it misstates the relationship between earned value and invested value.
Option d. (AP-EP)*100: This computes the absolute difference between AP and EP, scaled by 100, which gives a raw difference in currency units as a percentage of what? It lacks the ratio structure essential to yield calculations and can be misleading because it doesn't normalize by EP or AP, so it doesn't represent yield percentage.
In summary, option a correctly captures yield as the ending value (or earnings) relative to the initial value, expressed as a percentage by multiplying the ratio by 100, whereas the other options either invert the ratio, subtract values, or assert an incorrect interpretation altogether.

The formula to calculate the yield percentage is

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