ROI greater than 1 indicates?

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Prepare for the WGU MKTG 6040 D381 E-Commerce and Marketing Analytics Exam. Use flashcards and multiple choice questions with hints and explanations. Ensure your success on this crucial exam!

Multiple Choice

ROI greater than 1 indicates?

Explanation:
ROI measures profitability by comparing the gain from an investment to the amount spent. When ROI is greater than 1, the gain exceeds the cost, so you’ve earned more than you invested. That’s a positive return. For example, investing $100 and ending up with $150 in net profit yields ROI = 1.5, a 150% return. Break-even would be ROI around 0 (no net profit), and a negative return would be ROI less than 0, so ROI over 1 clearly indicates a positive, above-cost return.

ROI measures profitability by comparing the gain from an investment to the amount spent. When ROI is greater than 1, the gain exceeds the cost, so you’ve earned more than you invested. That’s a positive return. For example, investing $100 and ending up with $150 in net profit yields ROI = 1.5, a 150% return. Break-even would be ROI around 0 (no net profit), and a negative return would be ROI less than 0, so ROI over 1 clearly indicates a positive, above-cost return.

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