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 |
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 |
... | ... |