RETURN ON INVESTMENT Definition

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RETURN ON INVESTMENT (ROI) is a profitability measure that evaluates the performance of a business. ROI can be calculated in various ways. The most common method is Net Income as a percentage of Net Book Value (total assets minus intangible assets and liabilities).

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CORRESPONDENT BANK is a bank having communications and business links with the sellers bank.

ABNORMAL RETURNS is the difference between the actual return and that is expected to result from market movements (normal return).

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