Letâs all take the test looking for 100% all round.
I tried that. A few tricky questions!
âYield is a way of measuring how well an investment is performing and how it is expected to perform in the futureâ
Is not
âIncome from an investment as a percentage of its current price is known as yield.â
In not going insane there? Performance is not the same as incomeâŠ
Yield is the only way to measure performance of fixed income products though. Comparing 1-year T bills, higher yield higher performance, so not applicable to capital growth investments, but it is a way to measure past and future performance.
I canât believe I answered all the questions and not one did I need to use
or
!
It didnât really ask that in relation to fixed income products though did it?
It said âa wayâ not âthe only wayâ, so probably fair.
A high yield can mean the share price is tanking, as the yield will be based on the previous dividends
Again, a good point, but that doesnât invalidate the question. Itâs a way, it doesnât matter how good a way it is.
but maybe the question did ask in relation to fixed income products?
The way you phrased it implied the answer in the quiz was incorrect, but it is not.
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