Question

Which is a measure of the efficiency of an investment?

OA return rate
OB. return on investment
oc efficiency coefficient

Answer 1

Return of Investment

Explanation:

Return of investment is calculated or measured to know the efficiency of an investment.

Every investment are made in the hope of return or appreciation in future. We generally compare different investment plan to understand which one is the best one to invest.

Return of investment (ROI) is calculated with keeping in mind the time of project, rate of return, Net present value etc.

Formula;
`Return\ of \ investment (ROI)= (current\ value\ of \ investment - cost\ of \ investment )/(cost\ of\ investment)`