Return on Equity Can Be Expressed as Return on Net

question 59

True/False

Return on equity can be expressed as return on net operating assets multiplied by leverage (net operating assets/equity) and by earnings leverage.

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Definitions:

Lorenz Curve

A graphical representation of the distribution of income or wealth within a society, showcasing the degree of inequality.

45-Degree Line

In economics, often used in Keynesian cross diagrams to show points where aggregate output (or income) equals aggregate expenditure, indicating equilibrium.

Gini Coefficient

A measure of the inequality of a distribution, often used to measure income inequality, ranging from 0 (perfect equality) to 1 (perfect inequality).

Lorenz Curve

A graphical representation of the distribution of income or wealth within a society, showing the proportion of total income earned by any given percentage of the population.