Return on investment (ROI) is calculated using which of the following formulas?
Multiple Choice
Average operating assets ÷ Net operating income
Net operating income ÷ Average operating assets
Total assets ÷ Average net operating income
Average net operating income ÷ Total assets

Respuesta :

Return on investment (ROI) is calculated using b) Net operating income ÷ Average operating assets.

An indicator of an investment's profitability is return on investment (ROI). ROI measures the effectiveness of an investment by comparing the amount you invested to the amount you earned. Let's examine how it is applied by both enterprises and private investors.

Divide the amount you received from an investment—often referred to as the net profit, or the cost of the investment minus its current value—by the cost of the investment, then multiply the result by 100 to determine return on investment.

ROI is a statistic for assessing the effectiveness of an investment that is clear and simple to calculate. This frequently used calculation enables you to compare investment possibilities side by side.

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