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One of the efficiency metrics of Financial Investment defined as ratio of Cash Return over amount of Initial Investment:

\rm ROI = \frac{Cash \ Return − Cost \ of \ Investment}{Initial \ Investment}

where

\rm Cost \ of \ Investment

consist of  \rm Initial \ Investment and al types of additional expenses to facilitate  Cash Return


ROI is normally presented in percentage (120%, 300%, ...).

Alternatively it can be presented as multiplier of Initial Investment:

1XCash Return are equal to Initial Investment
2XCash Return are twice higher than Initial Investment
3XCash Return are three times higher than Initial Investment
......

See also


Economics / Investment / Financial Investment /  Financial Investment Metrics

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