Return on Investment (ROI) refers to the reward businesses receive for choosing capital investments (ROI).
Return on investment (ROI) is a performance metric used to assess an investment's effectiveness or profitability or to compare the effectiveness of several investments. ROI aims to quantify the amount of return on a certain investment in relation to the cost of the investment.
A common profitability statistic used to assess how well an investment has done is return on investment (ROI).
By dividing an investment's net profit (or loss) by its initial cost or outlay, ROI is represented as a percentage.
ROI may be used to rate investments in various projects or assets and create apples-to-apples comparisons.
ROI does not account for time passing or the holding duration, which means it may not account for the opportunity costs of investing elsewhere.
If there are alternative options accessible, it is important to analyze whether or not anything provides a decent ROI.
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