How is "investment return" defined?

Investment return is defined as the profit or loss expressed as a percentage of the initial investment. This metric helps investors evaluate how well their capital is working for them, relative to what they initially invested. By presenting the return as a percentage, it allows for easy comparison across different investments, regardless of the initial amounts invested.

For example, if someone invested $10,000 and later sold their investment for $12,000, the profit would be $2,000. The investment return would be calculated as ($2,000 / $10,000) x 100%, which equates to a 20% return on the investment. This calculation provides a clear understanding of the performance of the investment in question.

The other choices do not capture this essential concept as effectively. The amount of the down payment is merely a part of the initial investment and does not reflect overall profitability. Yearly rental income might contribute to an investment's success but does not account for the total return when factoring in costs and initial investment. The total value of assets owned does not provide insight into profitability concerning the investment; it's a broader measurement that lacks the specific focus on returns relative to initial outlay.