Which is a measure of the efficiency of an investment?

A.

return rate

B.

return on investment

C.

efficiency coefficient

The correct answer is option B. Return on Investment.

Step-by-step explanation:

The return on investment is used when we want to measure the capacity of an investment, or compare it among several other investments.

Here the benefit of a certain investment will be compared in contrast to the money invested.

To calculate the return on investment there is a formula which will give us a percentage:

ROI = Margin on sales X asset turnover.

Now let's clarify what each of these things is:

Margin on sales: it is the result obtained from the calculation of benefits / sales.

Asset Rotation: this is the result obtained from the calculation of Average Total Sales / Assets.

Answer:B ROI