Which kind of analysis assesses the potential return on investment for a set of investments?

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ROI analysis, or Return on Investment analysis, is specifically designed to evaluate the potential return generated from an investment relative to its cost. This analysis helps in determining the effectiveness and profitability of an investment by calculating the expected benefits against the financial input required. In practice, it provides a ratio or percentage that reflects how much profit an investment might generate, which is essential for decision-making in finance and investment strategies.

The other choices address different aspects of investment evaluation. Risk analysis focuses on identifying and evaluating risks associated with an investment, rather than measuring returns. Scenario analysis involves assessing different outcomes based on varying assumptions, which can help model the potential impact of changes but does not specifically quantify returns. Benchmarking analysis compares an investment or performance metrics against standards or best practices, rather than calculating their direct return on investment. By focusing on the financial outcome, ROI analysis stands out as the most relevant for assessing potential returns on investment.

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