Which Financial Ratio Measures the Rate of Return on the Book

question 7

Multiple Choice

Which financial ratio measures the rate of return on the book value of shareholders' total investment in the company?

• A) return on investment
• B) return on equity
• C) gross profit margin
• D) net profit margin
• E) earnings per share

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Definitions:

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The principle that individuals choose to participate in an activity or research without coercion.

Operationalization Process

The procedure of defining the measurement of a phenomenon that is not directly measurable, by aligning it with an observable operation, quality, or quantity.

Concepts

Fundamental ideas or categories that help to organize thought and serve as the building blocks for more complex theories or knowledge.

Variables

Elements or features that can vary or change within a study, experiment, or statistical analysis, impacting the outcome or results.