ROI

ROI is short for return on investment and evaluates the efficiency on an investment by a ratio of the money gained or lost on an investment to the …

ROI is short for return on investment and evaluates the efficiency on an investment by a ratio of the money gained or lost on an investment to the amount of money invested. ROI has a wide range of uses as the calculation can be modified, based on what is included as gains or losses, to fit a certain situation.

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ROI = (Gain from Investment – Cost of Investment)/ Cost of Investment

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