The rise in the price of a security, such as a common stock is the capital gains yield. The capital gains yield formula does not include dividends paid on the stock, which can be found using the dividend yield. As per expected capital gains yield formula, to calculate capital gains yield percentage just subtract initial stock price from final stock price and divide the answer by initial stock price and then multiply the final answer by 100.

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The expected capital gains yield formula helps to find the security’s appreciation during the time when the stock is held.