Which One of the Following Is an Advantage of Both

question 33

Multiple Choice

Which one of the following is an advantage of both ROI and Residual Income (RI) ?

• A)They both measure all elements important for measuring short-term financial performance of investment centers: revenues,costs,and investment.
• B)They are both very widely used.
• C)They both can use the minimum rate of return to adjust for differences in risk.
• D)They are both comparable to interest rates and to rates of return on alternate investments.
• E)They can both use a different minimum rate of return for different types of assets.