Yield and Appreciation Appreciation is the increase in value of an investment independent of its yield It excludes accrued interest as well as increases in value which are due to additional deposits EXample When a stock bought at $95 rises to $97. 50, it has appreciated by $2.50, or $250/$95=26% Strong C2-Understanding Risk and Return 2-72 - 7 Strong C2 – Understanding Risk and Return Appreciation is the increase in value of an investment independent of its yield. Example : When a stock bought at $95 rises to $97.50, it has appreciated by $2.50, or $2.50 / $95 = 2.6% . Yield and Appreciation It excludes accrued interest, as well as increases in value which are due to additional deposits