ROE Is an Important Benchmark Because It Indicates the Overall

question 10

True/False

ROE is an important benchmark because it indicates the overall profits of a firm for a particular period relative to the shareholders' investment in the firm.

---

Definitions:

Investment Carrying Amount

The value at which an investment is recognized in the balance sheet after deducting any impairment or amortization.

Markup

The difference between the cost of a good or service and its selling price, expressed as a percentage over the cost.

Management Fee

A charge levied by an investment manager for managing an investment fund.

Fair Value Gain

Positive changes in the fair market value of investments or assets, reflecting increased worth.