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Originally Posted by raybo
ROI means "Return On Investment". If you bet $1000 then that is your "investment". If you are returned $1200, that is your "return". Your profit is $200 ($1200 -$1000 = $200)
ROI formula is Return/Investment ($1200/$1000 = 1.20 or a 20% profit on every dollar bet) (a 1.00 ROI is break even, no profit and no loss).
How much simpler could it be?
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Raybo, your formula is correct, but the word "total" should be put in front of "return" to read "total return" and in front of investment to read "total investment".
I realize that you implied that, but there seems to be a difficulty by some in understanding this simple concept.
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