Order 152117769 - Running head BUSINESS MANAGEMENT Business Management Name of Student Institution Affiliation 1 BUSINESS MANAGEMENT 2 Business

Order 152117769 - Running head BUSINESS MANAGEMENT...

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Running head: BUSINESS MANAGEMENT 1 Business Management Name of Student Institution Affiliation
BUSINESS MANAGEMENT 2 Business Management Return on Investment (ROI) is the ratio between the net profit and the total cost of investment. In our illustration, the initial buying price of the house is $500k. The additional costs amount to $200k, making the total cost of $700k. If the house is sold at $750k, the total returns amount to $50k. The profit generates a ROI of 7.1%. A positive RIO simply means that the return is good, while a negative ROI means that the returns are bad. There are, however, different factors that affect the earnings. An investor should consider the market price, the associated risks,

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