Relative yield

Definition:

Often refers to a yield on a security relative to the yield on a benchmark security (i.e. a ratio). It is more common to consider a yield spread which is just the difference in two yields.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Naked option strategies

An unhedged strategy making exclusive use of one of the following: Short call strategy (selling or writing call options), and short put strategy (selling or writing put options). By themselves, these... Read More

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