A Return on Equity of 17% Implies Which of the Following

question 56

Multiple Choice

A return on equity of 17% implies which of the following?

• A)For every 17 cents invested, a return of $1.00 results
• B)For every $1.00 invested, a return of 17 cents results
• C)For every $1.17 invested, a return of 17 cents results
• D)For every $10.00 invested, a return of $1.17 results
• E)None of the above

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Definitions:

Predict

To declare or indicate in advance; especially, to foretell based on observation, experience, or scientific reason.

Variable

A characteristic, number, or quantity that can be measured or quantified and can vary among individuals or over time.

Least Squares Line

A straight line that minimizes the sum of the squared differences between the observed values and the values predicted by the line.

Sales

The transactions involving the exchange of goods or services for money or value, typically measured over a particular period of time.