In the context of finance, what is the term for the expected return on investment?

The term for the expected return on investment is often referred to as "Yield." Yield represents the income generated from an investment, usually expressed as a percentage of the investment's cost or its current market value. It can include interest, dividends, and other income streams relative to the amount invested. Investors typically use yield as a way to measure the revenue-generating potential of an investment relative to its cost.

In financial analysis, yield is crucial for comparing different investments and determining their attractiveness. Yield provides a straightforward measurement of what an investor can expect to earn from an investment over a specified period, making it a fundamental concept in finance for assessing returns.

While other terms are also related to financial performance—such as revenue, which represents the total income generated from sales, and profit margin, which measures profitability as a percentage of revenue—neither specifically indicates the return on an investment. Internal Rate of Return (IRR) is a metric used to estimate the profitability of potential investments, particularly in capital budgeting, but it focuses on the rate at which the investment grows over time rather than the income generated as a percentage of the investment's cost. Thus, "Yield" is the most appropriate term for the expected return on investment in this context.