In investment terms, how is yield generally defined?

Yield is generally defined as the amount of current income provided by an investment, typically expressed as a percentage of the investment's cost or current market value. This definition emphasizes the income aspect, encompassing dividends from stocks, interest from bonds, or rental income from real estate, which investors typically seek. Yield gives a snapshot of the cash flow that an investment is generating at a particular point in time, allowing investors to assess the income-producing capability of their investments relative to their investment amount or market price.

The other choices represent different concepts within the realm of investments. Total return, which includes appreciation, addresses the overall profit from an investment, taking into account both income and price changes over time. Cash flow from the sale of an asset refers to the proceeds gained from selling an investment rather than the ongoing income it generates. Projected earnings based on historical data focuses on future performance by analyzing past trends, which does not directly pertain to the immediate income produced by an investment. Thus, the definition that aligns most closely with the concept of yield is the amount of current income provided by an investment.