Return

In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested. The amount of money gained or lost may be referred to as interest, profit/loss, gain/loss, or net income/loss. The money invested may be referred to as the asset, capital, principal, or the cost basis of the investment. ROI is usually expressed as a percentage rather than a fraction.The annual return on an investment, expressed as a percentage of the total amount invested. also called rate of return.The yield of a fixed income security is also called return. Return is same as tax return. In finance if there is return then there is risk. so, in any business if return is to be gained then they should also bear risk. Higher the return higher the risk. So, risk and return both are the important parts of finance. Both risk and return plays vital role in financing.