Did I pick the right answer for this question?

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So1963idn So1963idn

03-12-2021
Mathematics

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Did I pick the right answer for this question?

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Анонимidn Анонимidn · Answer 1 · 2021-12-03T22:12:45-05:00

Answer:

I would agree with your answer

Step-by-step explanation:

Though it's kind of comparing apples to oranges as the basis is unclear

I'm ASSUMING both investments occurred during the same time period.

The first one appears to have a ROI of 305/800 = 0.38125

The second one is much muddier

If the investment is cashed out to zero and the total return to you is $900, then the ROI is (900 - 650) / 650 = 0.3846153. This is better than the first return, but just a little bit.

However, if the investment has not been cashed out and your $650 is actually still working and you have received $900 in interest or dividends, then the ROI is 900/650 = 1.384615... which is more than 3.6 times greater return than the first option.

Sagot :

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