Return on investment (ROI)is driven by _________________.

Question

Quizplus · Accepted Answer

ROI is driven by leverage, which refers to using borrowed money to increase the potential return on an investment. By borrowing funds, an investor can increase the amount of capital they have to invest and potentially earn a higher return. However, using leverage also increases the risk of losses if the investment does not perform as expected. The loan interest rate, how long it takes to sell the asset, and the inflation rate can all impact an investment's overall return, but they are not the primary drivers of ROI.

Return on Investment (ROI)is Driven by _________________