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Which is a measure of the efficiency of an investment? return rate return on investment efficiency coefficient

2 Answers

4 votes

Answer:

The measure of the efficiency of an investment is:

Return on investment (ROI)

Explanation:

Return on investment (ROI)--

Return on investment is a kind of a performance measure that measures the efficiency of an investment or compare efficiency of different investments.

The formula to calculate ROI is given by:


\text{ROI}=\frac{\text{Benefit\ or\ return\ on\ investment}}{\text{Cost\ of\ investment}}* 100

Hence, the answer is:

Return on Investment (ROI)

User As As
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2 votes
"return on investment" is the best measure of the efficiency of an investment, but it should be noted that there are other indicators of how well an investment is doing. 
User Tyler Gill
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