as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
why use roi if i can use effective compount interest?
user
yes though i'd likely put a caveat on that. if you take short-term investments and extrapolate the results to get an annual result this can be misleading. for example, if a stock goes up 10% in a month, assuming this will continue for the next 11 months may not be a great idea. thus, beware of how much data do you have in making these calculations. when looking at long-term investments, the compound annual growth rate can be quite useful for comparison.
assistant