What type of performance data provides a calculation of current yield for money market funds?

What type of performance data provides a calculation of current yield for money market funds?

• A. Standard Performance Data
• B. Annual Yield Report
• C. Return on Investment Analysis
• D. Risk Assessment Measures

Answer: (A)

The correct choice reflects that standard performance data typically includes key metrics that help investors assess the performance of money market funds. Current yield is a crucial measure within that data, as it provides insight into the income generated relative to the fund's price, allowing investors to understand how much they can earn from their investment on an annual basis without factoring in compounding.

Current yield is particularly relevant for money market funds since these funds are designed to offer investors liquidity and a stable return on their short-term investments. Standard performance data effectively encompasses various performance indicators, including current yield, which investors can use to make informed decisions.

In contrast, an annual yield report might present a more consolidated view of returns over a year, but it may not specifically focus on the current yield, which is a specific calculation of how much income is generated relative to the investment's cost at a specific time. Return on investment analysis generally looks at total returns and profitability but does not provide a straightforward calculation of yield for money market funds. Risk assessment measures concentrate on the risk factors associated with investments rather than their income potential.