The amount of profit you receive from your investment is usually measured as a
percentage of your investment. Which of the following match this definition?
O A. Return on investment.
O B. Rate of return.
OC. ROI.
OD. All of the above.
Return on investment (or ROI) can be measure as the the percentage of profit on investment, which is the same as the amount of money you earn from certain investment, as a percentage of this investment, which can be also expressed as rate of return.
As an example, if you invest in a cafe business $40,000 and at the end of the period you earn $6,000 after paying all the costs, the rate of return is [tex]\frac{6,000}{40,000}=0.15=15\%[/tex].
