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Rate of Return or Return on Investment (ROI) is the
ratio of capital earned or lost in relation to the amount of capital invested
on certain project. The amount of capital earned or lost is termed as profit or
interest, while the investment is termed as capital, principal or asset. More
theoretically, the estimation of ROI involves dividing the Net Profit by Net
Worth. In general, expression of Rate of Return is depicted through Percentage symbol.
Remember, ROI entails both gains and losses earned on the capital invested in
the earlier period, current period and for the future.
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