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What is Return On Investment (ROI)?

Return On Investment or ROI is a rate showing how much money the company made from the capital originally invested in it.
Businesses and investors expect a return on their investments and ROI is a good measure to show how successful a company is. It is calculated by dividing the profit by the originally invested amount.

Example of Return On Investment (ROI)

If you invested $1000 and get back $1500, your profit was $500, which means ROI=50%.

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