Return on Investment (ROI)

Return on Investment (ROI): The return on investment is a performance metric used to evaluate the efficiency and profitability of an investment, marketing campaign, or business strategy. It's calculated by dividing the net profit (the revenue generated minus the costs associated with the investment) by the initial costs of the investment. ROI is typically expressed as a percentage, which helps compare the effectiveness of different investments or campaigns. A higher ROI indicates a more successful outcome, while a lower ROI suggests a less profitable investment.

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