BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Return on investment (ROI) is an approximate measure of an investment’s profitability. ROI is calculated by subtracting the initial cost of the investment from its final value, then dividing this new number by the cost of the investment, and finally, multiplying it by 100.

Detailed explanation-2: -The table shows that while the market has a long-term average annual return of 10%, year-to-year returns can vary significantly. The 5-year return is heavily skewed by the 2022 downturn. The 20-year return includes the Great Recession, and the 30-year return includes the dot-com crash of the early 2000s.

Detailed explanation-3: -Returns are always calculated as annual rates of return, or the percentage of return created for each unit (dollar) of original value. If an investment earns 5 percent, for example, that means that for every $100 invested, you would earn $5 per year (because $5 = 5% of $100).