Select the correct options related to Return on Investment (ROI) A. $ROI=\frac{Net\, Income}{Equity}×100$ B. It indicates how own money is being used. C. It will include not only what the investor spent out of his/her pocket, but also the borrowed funds D. It equals the net income from a business divided by the total money invested in the venture multiplied by 100 E. $ROI=\frac{Net\,profit}{Total\,capital\,invested}×100$ Choose the correct answer from the options given below: |
A, B and D only B, C and D only C, D and E only B, C and E only |
C, D and E only |
Return on investment equals the net income from a business or a project divided by the total money invested in the venture multiplied by 100 (D). When calculating ROI, the investment will include not only what the investor spent out of his/her pocket, but also all borrowed funds. (C)
ROI shows how own money and the borrowed money is being used. So statement B is partially correct. |