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Investing Basics
Return on Investment (ROI)
Definition
A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of different investments.
Use Case
An investor calculates the ROI of a rental property to evaluate its profitability and compare it with other potential investments.
Related Terms
Capital Gains
Cash-on-Cash Return
Glossary Categories
Explore more commercial real estate definitions, use cases and terms.
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