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10 July, 17:16

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

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  1. 10 July, 17:44
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    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.
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