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What is Return on Investment?

Also known as the Rate of Return, ROI measures the gain or loss generated on an investment relative to the investment’s cost. It is usually expressed as a percentage and is used for personal financial decisions to compare a company’s profitability or the efficiency of different investments.
ROI is a performance indicator used to evaluate an investment’s efficiency or compare the efficiencies of multiple investments. It is one way of linking returns to capital invested in economic terms.

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