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  2. A return, also known as a financial return, in its simplest terms, is the money made or lost on an investment over some period of time. A return can be expressed nominally as the change in dollar value of an investment over time. A return can also be expressed as a percentage derived from the ratio of profit to investment.
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    What is return on investment?Return on investment is a measure of the return generated by each dollar invested in an asset. It means the same thing as rate of return and is calculated the same way—by subtracting the purchase price of an investment from its current value, then dividing the result by the purchase price to yield a percentage return.
    What is return on investment (ROI)?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 return on investment (ri)?ROI tries to directly measure the amount of return on a particular investment, 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 .
    Why is return on investment important?Return on investment helps investors to determine which investment opportunities are most preferable or attractive. For example, let us consider Investment A and Investment B, each with a cost of $100. These two investments are risk-free (cash flows are guaranteed) and the cash flows are $500 for Investment A and $400 for Investment B next year.
     
  4. What Are Returns in Investing, and How Are They Measured?

     
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    WEBSep 28, 2022 · Return on investment is a simple ratio that divides the net profit (or loss) from an investment by its cost. Because it is expressed as a percentage, you can compare...

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  10. Understanding Yield vs. Return | U.S. Bank

    WEBJan 6, 2023 · Return is a measure of an investment’s total interest, dividends and capital gains, expressed as a financial gain or loss over a specific timeframe. Return provides a glimpse of the investment’s prior …

  11. ROI Formula (Return on Investment) - Corporate …

    WEBReturn on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost. It is most commonly measured as net income divided by the original capital …

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