Question

Rate of Return, Return on Investment, and ROI all mean the same thing which best describes these terms

Answer 1

Answer:

See the answer below

Explanation:

Rate of return, return on investment, ROI generally refers to the rate at which an investor makes profit or loss on his/her investment relative to the amount invested.

In order words, the terms refers to the percentage gain or loss on a particular amount of investment.

Mathematically, rate of return/return on investment is expressed as:

  Profit / Cost of Investment x 100

Profit in this case refers to the gains made after tax has been paid.

Answer 2

The rate of return or Return on investment refers to the percentage gain or loss on a particular amount of investment.

What do you mean by Return on investment?

The rate at which an investor makes a profit or loss on his/her investment relative to the amount invested is called as Rate of return, return on investment, ROI.

Mathematically, the rate of return/return on investment is expressed as:

$\rm\,\frac{Profit} {Cost\, of\, Investment}\, \times 100$

Hence, the Rate of Return, Return on Investment, and ROI all mean the same thing.

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