Return on Investment (ROI) is a performance measure used to evaluate the an investment or compare the among various investment options. It measure the benefit or return on a given investment as a percentage of investment amount. , relative to the investment’s cost.
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.
The Higher rate signifies better returns in comparison to lower rates. The Value o Return such calculated increases with the time frame or period or investment.
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