You Observe That a Firm's ROE Is Above the Industry

question 103

Multiple Choice

You observe that a firm's ROE is above the industry average,but its profit margin and debt ratio are both below the industry average.Which of the following statements is correct?

• A)Its total assets turnover must be above the industry average.
• B)Its return on assets must equal the industry average.
• C)Its TIE ratio must be below the industry average.
• D)Its total assets turnover must be below the industry average.

Identify the uses of duration in immunization strategies and interest rate risk management.

Recognize the impact of yield curve predictions on bond returns.

Understand the basis and importance of swaps in bond portfolio management.

Calculate the effect of changing interest rates on bond durations and prices.

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Definitions:

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