Which of the Following Is the Formula to Calculate the Return

question 89

Multiple Choice

Which of the following is the formula to calculate the return on stockholders' equity?​

• A) ​Operating income / Average stockholders' equity
• B) ​Gross income / Average stockholders' equity
• C) ​Average stockholders' equity / Operating income
• D) ​Average stockholders' equity / Gross income

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Definitions:

Least Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of squares of the differences between observed values and those predicted by a linear model.

P-value

The probability of obtaining test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is correct.

Significant

Indicating a statistically meaningful relationship or difference in data, often determined by achieving a p-value below a predefined threshold.

Least Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of squares of the residuals.