Which of the following is a performance measure that is used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments?
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A. B. C. D.C.
Return On Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.
To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.
The return on investment formula: ROI = (Gain from investment - Cost of investment) / Cost of investment In the above formula "gains from investment", refers to the proceeds obtained from selling the investment of interest.
Incorrect Answers: A, B: These options are not related to the measurement of efficiency of an investment.
D: RAID is described as a redundant array of inexpensive disks.
It is a technology that allows computer users to achieve high levels of storage reliability from low- cost and less reliable PC-class disk-drive components, via the technique of arranging the devices into arrays for redundancy.
The performance measure that is used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments is called Return on Investment (ROI). ROI is a financial ratio that measures the net profit or loss of an investment relative to the amount of money invested.
ROI is expressed as a percentage and is calculated as follows:
ROI = (Gain from Investment - Cost of Investment) / Cost of Investment
The gain from investment includes all the revenue generated from the investment, including any capital gains or interest earned. The cost of investment includes all the expenses associated with the investment, including the initial cost, maintenance, and operating costs.
ROI is commonly used to evaluate the profitability of various investment opportunities, including information technology (IT) investments, such as security projects. It is also used to compare the efficiency of different investments, as it provides a standardized method for evaluating the returns on investments of different sizes and durations.
Return on Security Investment (ROSI) is a similar performance measure that is used specifically to evaluate the effectiveness and efficiency of security investments. It is calculated by dividing the monetary benefit of a security investment by the cost of the investment.
Total Cost of Ownership (TCO) is another performance measure that is used to evaluate the total cost of a particular investment, including both direct and indirect costs. It is used to determine the long-term costs of an investment, such as the cost of maintenance, upgrades, and support over the entire lifecycle of the investment.
Redundant Array of Inexpensive Disks (RAID) is a data storage technology that uses multiple disks to provide redundancy and improve performance. It is not a performance measure used to evaluate the efficiency of an investment.