A Return on Investment (ROI)is an Assessment of an Investment

question 16

True/False

A return on investment (ROI)is an assessment of an investment project's value,calculated by dividing the value of the project's benefits by the project's cost.

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Definitions:

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, typically traded on a futures exchange.

Underlying Asset

A financial asset upon which a derivative's price is based, such as stocks, bonds, commodities, or currencies.

Leverage

The use of borrowed funds to enhance the potential return of an investment.

Transaction Costs

Expenses incurred when buying or selling securities, including broker fees, commissions, and other charges that affect the profitability of investments.