Which of the Following Can Be Used to Compute the Return

question 102

Multiple Choice

Which of the following can be used to compute the return on equity?
I. Profit margin * Return on assets
II. Return on assets * Equity multiplier
III. Net income/Total equity
IV. Return on assets*Total asset turnover

• A)I and III only
• B)II and III only
• C)II and IV only
• D)I, II, and III only
• E)I, II, III, and IV

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Definitions:

Gambler's Fallacy

The mistaken belief that if something happens more frequently than normal during a given period, it will happen less frequently in the future, or vice versa.

False Consensus

The cognitive bias that leads people to overestimate the extent to which their beliefs, values, opinions, or habits are normal and typical of those of others.

Implementation Costs

Expenses associated with putting a newly adopted system, plan, or policy into effect.

Arbitrage

The practice of buying and selling assets in different markets or in different forms to profit from price discrepancies.