what is a measure of efficiency in an investments 
an investment s measure of efficiency is its return on investment this is the way investors and financial professionals measure how efficiently an investment makes a profit this metric can also be used to compare one investment to another or multiple investments in a particular class such as mutual funds that invest in the same asset class roi can be expressed as a ratio by dividing an investment s return by its cost it can also be expressed as a percentage by multiplying the result by 100 the bottom line