What is ROI

Question

What is ROI

Accepted Answer

ROI stands for Return on Investment. It is a financial metric used to measure the profitability of an investment relative to its cost.

ROI is calculated by dividing the net profit of an investment by its initial cost and expressing it as a percentage.
It helps investors evaluate the efficiency and profitability of different investment opportunities.
For example, if an investment of $10,000 generates a net profit of $2,000, the ROI would be 20%.
ROI can be used to compare the performance of different investments or to assess the overall financial performance of a company.
A higher ROI indicates a more profitable investment, while a negative ROI means the investment has resulted in a loss.

Accepted Answer

Roi measure the increas the value of the investment

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