The Mean Return on Equity (ROE) for a Group of Firms

question 97

Multiple Choice

The mean return on equity (ROE) for a group of firms in an industry is 15% with a variance of 9%. The coefficient of variation of the industry's ROE is ________.

• A) 0.2
• B) 0.6
• C) 1.7
• D) 5.0

---

Definitions:

Flynn Effect

The observed rise over time in standardized intelligence test scores, attributed to environmental factors such as improvements in education and nutrition.

Intelligence Scores

Numerical measures of a person's cognitive abilities relative to others, often derived from standardized tests.

Working Memory

Describes the brain's ability to store and manipulate information over short periods, crucial for decision-making and behavior.

Rehearsal

A mnemonic strategy that involves systematically repeating information to retain it in working memory.