The return on investment is the ratio of the amount gained (taken as positive), or lost (taken as negative), relative to the basis. The basis is the amount risked ("invested") to obtain that gain or loss, and is always positive. |
The return on investment (ROI) is a calculation used in business? used to determine whether a proposed investment is wise, and how well it will repay the investor. It is calculated as the ratio of the amount gained (taken as positive), or lost (taken as negative), relative to the basis. The basis is the amount risked ("invested") to obtain that gain or loss, and is always positive. |
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