Returns
Profit/gains realized from investment/capital employed.
Formula
Return on Investment (ROI) = (Net Profit / Investment) × 100
Real World
When Apple investors bought shares in 2013 at $55 and sold in 2023 at $175, they earned both capital appreciation and annual dividends, achieving strong returns on their original investment.
Exam Focus
For 'evaluate' questions, compare returns against alternatives like savings rates to justify whether investment was worthwhile.
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