Investment Return
Profit/gain from investment.
Formula
Return on Investment (ROI) = (Net Profit ÷ Investment Cost) × 100
Real World
SoftBank invested $300m in WeWork at a valuation of $47bn; after WeWork's collapse, its ROI was deeply negative, illustrating the risk of overvalued FDI.
Exam Focus
Always show the ROI formula and working in calculation questions; then interpret whether the return is acceptable given risk.
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