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They are one and the same and they are used interchangeably.

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What is the difference between rate of return and return on investment?

The rate of return is a percentage that shows how much an investment has gained or lost over a specific period, while the return on investment is a ratio that compares the profit of an investment to its cost.


What is the difference between return on capital and return on investment?

return on capital = earnings before interest and tax / capital employed * 100


How do you find the rate of return on an investment?

To find the rate of return on an investment, you calculate the percentage increase or decrease in the value of the investment over a specific period of time. This is done by dividing the difference between the final value and the initial value of the investment by the initial value, and then multiplying by 100 to get the percentage return.


What factors should be considered when buying assets for investment purposes?

When buying assets for investment purposes, consider factors such as the potential return on investment, the level of risk involved, the liquidity of the asset, the market conditions, the investment timeframe, and your own financial goals and risk tolerance.


What is the difference between ROI and ROIC?

ROI, or Return on Investment, measures the profitability of an investment relative to its cost. ROIC, or Return on Invested Capital, evaluates the efficiency of a company in generating profits from its invested capital. In summary, ROI focuses on the return on the initial investment, while ROIC considers the return on all capital invested in the business.

Related Questions

What is the difference between investment and expenditure?

An investment you expect a return, with the other, you don't.


What is the difference between rate of return and return on investment?

The rate of return is a percentage that shows how much an investment has gained or lost over a specific period, while the return on investment is a ratio that compares the profit of an investment to its cost.


Difference between marginal efficiency of investment and marginal efficicency of capital?

MEC is the expected rate of return on capital and MEI is the expected rate of return on investment.


What is the difference between return on capital and return on investment?

return on capital = earnings before interest and tax / capital employed * 100


What does return on assets mean?

Return on assets (or ROA) means how profitable a company is based on their total assets. The ROA is calculated by dividing a companies total earnings by it's total assets. It is often also called return on investment.


What is the difference between the required rate of return and the expected rate of return in investment analysis?

The required rate of return is the minimum return an investor needs to justify the risk of an investment, while the expected rate of return is the return that an investor anticipates receiving based on their analysis of the investment's potential performance.


What expressions is termed the investment turnover factor as used in determining the rate of return on investment?

Sales/Invested Assets


What is the difference between returns and profit?

return is calculate against investment. profit is calculte against cost.


How do you find the rate of return on an investment?

To find the rate of return on an investment, you calculate the percentage increase or decrease in the value of the investment over a specific period of time. This is done by dividing the difference between the final value and the initial value of the investment by the initial value, and then multiplying by 100 to get the percentage return.


What is the difference between the natural state of interest and the bank rate?

In contemporary terms, the natural rate of interest is what businesses expect to earn on real investment. The bank rate is the return on financial assets in general and commercial bank loans in particular.


What is the difference between yield and coupon rate?

The difference between the coupon rate and the required return of a bond is dependent upon the type of bond. Junk bonds will have the biggest difference between its return and the coupon rate.


What factors should be considered when buying assets for investment purposes?

When buying assets for investment purposes, consider factors such as the potential return on investment, the level of risk involved, the liquidity of the asset, the market conditions, the investment timeframe, and your own financial goals and risk tolerance.