Closing thoughts
- The return on investment formula is a core part of tracking the performance of any portfolio, investment, or business.
- ROI isn't the ultimate metric, but it can be useful.
- You also need to consider opportunity cost, risk/reward ratio, and other factors that may have an impact on your choice between different investment opportunities.
- As a starting point, however, ROI can be a good barometer to evaluate a potential investment.
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