What Does Return On Investment Mean?

What Does Return On Investment Mean?

1 Answer

  1. Retrun On Investment or ROI is the measure of return that can be generated on an investment to the cost of investment.
    ROI is a great metric to make decisions on whether to make a particular investment or not.
    Return on investment can be calculated using the following formula:
    ROI = (Current Value of investment – Cost of investment) / Cost of investment
    You can read in depth about ROI in https://www.investopedia.com/terms/r/returnoninvestment.asp article.

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