Return on Investment (ROI)
Return on Investment (ROI) is a financial metric used to evaluate the performance of a particular investment. It is calculated by dividing the profits from an investment by the total capital allocated to the investment in percentage terms.
For example, if you invest a sum of $10000 in a business that gives you a profit of $1000 a year, the ROI of that business is 10%. ROI can be used to compare the performances of various investments.
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Internal Rate of Return (IRR)
Inverted Yield Curve