An investor cannot evaluate any investment, whether it's a stock, bond, rental property, collectible or option, without first understanding how to calculate return on investment (ROI).
This calculation serves as the base from which all informed investment decisions are made and, although the calculation remains constant, there are unique variables that different types of investment bring to the equation. In this article, we'll cover the basics of ROI and some of the factors to consider when using it in your investment decisions.
Read more: http://www.investopedia.com/articles/basics/10/guide-to-calculating-roi.asp#ixzz3ZzJgNtSX
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FYI On ROI: A Guide To Calculating Return On Investment
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