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The tendency of the return on stockholders' equity to vary disproportionately from the return on total assets is because of
Addition Rule
A principle in probability theory that determines the probability of the occurrence of at least one of two events, taking into account their joint probability if they are not mutually exclusive.
Probability
A numerical quantification of the likelihood that a particular event will occur, often expressed as a number between 0 and 1, where 1 indicates certainty.
Rolling a Pair
The act of throwing two dice simultaneously and observing the outcome, often used in probability calculations.
Addition Rule
A principle in probability that calculates the chance of any of two or more mutually exclusive events occurring.
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