Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. ROI directly measures the amount of return on a particular investment, relative to the investment's cost.
Simple ROI calculates the basic percentage gain or loss over the lifetime of the investment, regardless of how long it took.
The Compound Annual Growth Rate answers the question: What fixed annual return would I have needed to grow my money from the initial amount to the final amount over this time period?
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