Yield represents the income or returns generated by an investment, expressed as a percentage of its original cost or current market value. It’s a critical measure in evaluating stocks, bonds, or real estate, as it helps investors understand the income potential of their investments. For instance, bond yield shows the interest earned relative to the bond’s price, while dividend yield relates to stock dividends. Yield is often used to assess risk since higher yields may offer more returns but can also indicate increased investment risk.