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ROI - Return on Investment

ROI - Return on Investment

An ROI, or return on investment, is a calculation that determines how profitable a given investment is. It takes into account how much money was put in, as well as what the returns on that investment were. The formula is (Gain from the investment - Cost of investment) / Cost of investment. For example, if someone purchases a share for $100 and later sells it for $120, their return on investment (ROI) would be 20%.