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Why is Return on Invst = Net Pft Ratio* Asset T.O Ratio
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It's like how much Amount created towards an asset. For example, if ratio is 1:1 it means for every Re.1 invested another Re.1 created or earned. If it is 0.5:1 for every 1 rupee invested 0.5 profit earned. That's why Return on investment= Net profit ratio or gain divided by Cost of investment or Asset..!
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