Respuesta :
True, the overall variability of a firm's returns depends on the expected return of each individual project, the percentage of funds invested in each individual project.
What does the term "return on investment" mean?
The profit you realize from your investments is the return. The ratio of net profit to the entire cost of the how ROI is typically defined. When ROI is used to determine the benefits and monetary returns of your investment, it is most helpful to your business goals when it pertains to something specific and measurable.
How is return on investment determined?
Return on investment (ROI) is a rough indicator of how profitable an investment is. ROI is determined by deducting the investment's original cost from its end value, dividing the result by the investment's cost, and then multiplying the result by 100.
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