Return on Investment (ROI)

Return on Investment (ROI)

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the benefit (or return) of an investment divided by its cost. The result is expressed as a percentage or a ratio. ROI = (Current Value of Investment - Cost of Investment) / Cost of Investment

Pros

Common and simple to understand

Cons

Often too simple of an explanation for banks and investors.

Real Talk

Great for high-level conversations with groups of varying levels of knowledge and expertise.

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