Return on Investment (ROI)
An expression that reviews the efficiency of an investment or a series of investments over a specified time frame. The ROI is calculated by taking the difference of the gain from investment and the cost of investment, then dividing over the cost of investment. This is usually taken as a percentage value. ROI is a very popular expression because of its ease of use and versatility. However, one can manipulate the ROI to suit his needs which may not accurately reflect the value of of his investment.
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