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You're out with friends when a talk show host walks up and asks if you'll answer a few trivia questions on camera. When he asks how many feet are in a mile, your first friend says 2,000 and your second friend says 3,000. You don't know the correct answer, so you say 2,500. Your response is similar to the judgments made by participants in which study?
Return On Assets Ratio
The Return on Assets (ROA) ratio measures a company's ability to generate profit from its assets, indicating efficiency in using assets to produce earnings.
Profit Margin
A financial performance metric that measures the amount of net income earned with each dollar of sales generated by comparing net income to revenue.
Asset Turnover Ratios
Financial metrics that measure the efficiency of a company in using its assets to generate sales or revenue.
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