As a knowledgeable professor in finance, I want to introduce you to the concept of annual percentage return. This term refers to the percentage of annual net income, whether actual or estimated, in relation to the capital value of an investment. It serves as an indicator of an investor's perception of the investment's potential and risk level. Generally, a lower expected yield suggests better prospects and lower risks, resulting in a higher capital value. Calculating the required yield takes into account various factors, such as the investment's perceived potential and risk factors.
