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Answer Posted / khemraj k
ROI stands for Return On Investment , also known as Internal rate of return.
ROI= Return on investment (ROI) is the ratio of a profit or loss made in a fiscal year expressed in terms of an investment. It is expressed in terms of a percentage of increase or decrease in the value of the investment during the year in question. For example, if you invested $100 dollars in share of stock and its value rises to $110 by the end of the fiscal year, the return on the investment is a healthy 10%, assuming no dividends were paid.
FORMULA goes like this
ROI= net profit /total investment *100
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