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Why does a paper clip float when placed on water?
Financial Leverage
The use of borrowed money to increase the potential return of an investment, amplifying both potential gains and losses.
ROA
Return on Assets, a profitability ratio indicating how efficient a company is at using its assets to generate earnings.
ROE
Return on Equity, a measure of financial performance calculated by dividing net income by shareholder's equity.
Earnings Variability
The fluctuation or volatility in a company's earnings over time, indicating the uncertainty and risk associated with the company's performance.
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