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Q » Explain return on investment (ROI) with an example.
01 Nov, 2025
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A » Return on Investment (ROI) measures the profitability of an investment, calculated as the net profit divided by the initial investment cost. For example, if you invest $1,000 in stocks and earn $1,200 after a year, your ROI is ($1,200 - $1,000) / $1,000 = 0.2 or 20%. This indicates a 20% gain on your initial investment, reflecting its financial performance.
01 Nov, 2025
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