What does the yield definition indicate in terms of equity?

The definition of yield in the context of equity specifically pertains to the required rate of return expected by an investor from an investment. Yield can be understood as the income generated by an investment, expressed as a percentage of the investment's cost or current market value. Therefore, option B correctly identifies yield as the required rate of return, reflecting what investors expect to earn from their investment in equity.

This concept is important for investors as it helps them evaluate whether an investment is worth the risk relative to its potential returns. Understanding yield allows investors to compare different investment opportunities effectively, ensuring their choices align with their financial goals and risk tolerance.

The other choices do not accurately define yield. For instance, total investment risk refers to the potential variability in returns and does not directly relate to the yield. Property appreciation measures the increase in property value over time, while depreciation calculates the decrease in value, neither of which align with the concept of yield in equity.