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Return on Investment (ROI) is a financial metric that measures:a.The profitability of an investment relative to its costb.The growth rate of a company's revenuec.The market value of a company's sharesd.The liquidity position of a companyClear my choice

Question

Return on Investment (ROI) is a financial metric that measures:a.The profitability of an investment relative to its costb.The growth rate of a company's revenuec.The market value of a company's sharesd.The liquidity position of a companyClear my choice

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Solution

The correct answer is:

a. The profitability of an investment relative to its cost

Similar Questions

ROI is a useful metric for:a.Comparing the profitability of different investmentsb.Assessing a company's liquidity positionc.Evaluating a company's debt financing strategyd.Determining the market value of a company's shares

ROI is a useful metric for comparing the profitability of:a.Different investmentsb.Companies in different industriesc.Companies with different capital structuresd.All of the above

Return on investment is a measure of:a.The profitability of a project or investmentb.The time required to recover the initial investmentc.The risk associated with an investmentd.The present value of future cash flows

Select the best answer.What is ROI? Return on Inventory Rate of Increase Return on Investment Revenue over Investments

Return on investment (ROI) is commonly expressed in each of the following ways, except Blank______.Multiple choice question.ROI = Net income / ((Beginning of year total assets + end of year total assets) / 2)ROI = Operating income / Average operating assetsROI = Net income / Average total assetsROI = Net income / Average stockholders' equity

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