Which of the following statements about return on investment is accurate?

Return on investment (ROI) is a widely used financial metric that helps measure the profitability of an investment relative to its cost. The statement indicating that ROI is calculated using income and gains is accurate because the fundamental formula for ROI requires determining the net profit generated by an investment (the income or gains) and dividing it by the initial cost of that investment. This provides a percentage that represents the profitability of the investment, allowing for straightforward comparisons between different investment opportunities.

Considering ROI in terms of income and gains ensures that the calculation is grounded in the actual performance of the investment, which helps stakeholders gauge its effectiveness. This method underlines the importance of both the returns generated and the initial investment amount when evaluating financial performance.

In contrast, other statements do not hold accurate insights about ROI. For instance, while it's generally advantageous for ROI to be easily quantified, various factors like the complexity of the investment and market variability can complicate this. The assertion that ROI is pertinent only for high-risk investments overlooks its usefulness across a wide range of risk levels, where it still serves as a valuable performance measurement tool. Lastly, suggesting that calculated returns do not relate to risk taken misunderstands the relationship between risk and return; higher returns are often associated with higher risks, making ROI a