The Formula to Calculate Rate of Return in Investment (ROI)

question 238

Multiple Choice

The formula to calculate Rate of return in investment (ROI) is:

• A) Rate of return in investment (ROI) = Profit margin * Investment turnover
• B) Rate of return in investment (ROI) = Profit margin + Investment turnover
• C) Rate of return in investment (ROI) = Profit margin - Investment turnover
• D) Rate of return in investment (ROI) = Profit margin / Investment turnover

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Definitions:

Market Supply Curve

A graphical representation showing the quantity of a good that producers are willing and able to sell at various prices within a specific time period.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied responds infinitely to changes in price.

Long-Run

Refers to a period during which all factors of production and costs are variable, and all possible changes in production capacity can be undertaken.

Supply Curve

Represents the relationship between the quantity of a good that producers are willing to sell and the price of the good, typically depicted as upward-sloping on a graph.