ROI (return on investment) measures the overall rate of return for a total period and annual return rates vary considerably.

Question

Quizplus · Accepted Answer

ROI is calculated by dividing the net profit by the total investment, and it gives an overall rate of return for a certain period. Annual return rates may vary based on different factors such as time period and investment type. Therefore, ROI measures the overall return, while annual return rates vary.

ROI (Return on Investment) Measures the Overall Rate of Return