Investment Return
Profit/gain from investment.
Formula
Investment Return (%) = (Gain / Cost of Investment) × 100
Real World
An early investor who put £1,000 into Apple shares in 2010 would have seen that stake grow to over £15,000 by 2020, representing a 1,400% return on investment.
Exam Focus
Always express return as a percentage and compare it against an alternative option or benchmark rate to demonstrate evaluation.
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