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Definition and Examples of

Return on Investment (ROI)

Explanation: ROI measures the gain or loss generated on an investment relative to the amount of money invested. It is a key metric for evaluating the efficiency of an investment.

Example: If your digital marketing campaign for your bookshop cost $1,000 and led to an increase in sales worth $1,500, the ROI is 50%.

Potential Issues: Misjudging ROI can lead to poor investment choices and inefficient allocation of resources.

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