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:

Categorical Data

Data that represent characteristics and can be divided into groups or categories that do not have a numerical value or order.

Statistical Inference

The process of using data from a sample to make generalizations or predictions about a larger population.

Arithmetic Mean

The sum of a set of numerical values divided by the number of values, commonly referred to as the average.

Midrange

The arithmetic mean of the maximum and minimum values in a data set, serving as a measure of central tendency.