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Return on investment

4/12/18 Return on investment


Return on Investment (ROI) shows how effectively and efficiently investment dollars are being used to generate profits. Investors use ROI to determine how successful their investment is performing, but also in comparing their ROI with the performance of other investments.

To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio.


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