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What Is Return on Investment?
Formula
ROI measures the percentage gain or loss on an investment relative to its cost.
It is one of the simplest and most widely used profitability metrics in finance.
Common use cases:
- Evaluating investment performance
- Comparing different investments
- Measuring business project returns
Frequently Asked Questions
Maria Gonzalez
Registered Dietitian, RD, MPH
Maria is a Registered Dietitian with a Master's in Public Health. She focuses on evidence-based nutrition assessment tools including BMI, calorie calculations, and body composition analysis.
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