@wikipedia
One of the efficiency metrics of Financial Investment defined as ratio of Cash Return over amount of Initial Investment:
LaTeX Math Block |
---|
|
\rm ROI = \frac{Cash \ Return − Cost \ of \ Investment}{Initial \ Investment} |
where
LaTeX Math Inline |
---|
body | \rm Cost \ of \ Investment |
---|
|
| consist of LaTeX Math Inline |
---|
body | \rm Initial \ Investment |
---|
|
and al types of additional expenses to facilitate Cash Return |
Usually denoted as multiplier of Initial Investment:
1X | Cash Return are equal to Initial Investment |
---|
2X | Cash Return are twice higher than Initial Investment |
---|
3X | Cash Return are three times higher than Initial Investment |
---|
... | ... |
---|
See also
Economics / Investment / Financial Investment