Investment

Return on investment

Return on investment
  1. How do u calculate return on investment?
  2. What is return on investment explain?
  3. What is a good ROI?
  4. What does 30% ROI mean?

How do u calculate return on investment?

ROI is calculated by subtracting the initial value of the investment from the final value of the investment (which equals the net return), then dividing this new number (the net return) by the cost of the investment, then finally, multiplying it by 100.

What is return on investment explain?

Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment's cost.

What is a good ROI?

According to conventional wisdom, an annual ROI of approximately 7% or greater is considered a good ROI for an investment in stocks. ... Because this is an average, some years your return may be higher; some years they may be lower. But overall, performance will smooth out to around this amount.

What does 30% ROI mean?

A ROI figure of 30% from one store looks better than one of 20% from another for example. The 30% though may be over three years as opposed to the 20% from just the one, thus the one year investment obviously is the better option.

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