What is ROI in investments and why is it important?
An example of an AI chatbot conversation about understanding ROI in investments.
What is ROI in investments and why is it important?
ROI stands for Return on Investment. It's a measure used to evaluate the efficiency of an investment.
How do you calculate ROI?
To calculate ROI, subtract the initial investment cost from the final value of the investment, then divide by the initial cost and multiply by 100.
What is a good ROI percentage?
A good ROI varies by industry, but generally, an ROI of 15% or higher is considered favorable.
Can ROI be negative?
Yes, a negative ROI indicates that the investment has lost value compared to its initial cost.
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