Investment
Purchasing assets expecting future returns: financial (stocks, bonds), physical (equipment, property), business (equity ...
Formula
Return on Investment (ROI) = (Net Profit / Cost of Investment) × 100
Real World
Warren Buffett's Berkshire Hathaway invested $1 billion in Apple in 2016; by 2023 that stake was worth over $170 billion, illustrating how patient investment in physical and equity assets generates outsized returns.
Exam Focus
When 'evaluate' appears, weigh risk against return and discuss timeframe — don't just list types of investment.
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