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Return On Investment (ROI)
5 Questions
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Return On Investment (ROI)

Created by
@UpscaleModernism

Questions and Answers

What does ROI measure in an investment context?

  • Total profit generated
  • Average rate of return on investment (correct)
  • Percentage of investment risk
  • Total amount invested

    • When calculating ROI, which of the following factors is typically not considered?

  • Initial investment amount
  • Market conditions during the investment period (correct)
  • Final value of the investment
  • Duration of the investment

    • If an investor puts in $10,000 and after one year receives $12,000, what is the ROI?

  • 30%
  • 20% (correct)
  • 10%
  • 15%

    • Which formula correctly represents how to calculate ROI?

    <p>ROI = (Final Value - Initial Investment) / Initial Investment * 100</p> Signup and view all the answers

    How is ROI typically expressed?

    <p>As a percentage</p> Signup and view all the answers

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