Which One of the Following Statements Does NOT Describe a Problem

question 10

Multiple Choice

Which one of the following statements does NOT describe a problem with using ROE as a performance measure?

• A) ROE measures return on accounting book value,and this problem is not solved by using market value.
• B) ROE is a forward-looking,one-period measure,while business decisions span the past and present.
• C) ROE measures only return,while financial decisions involve balancing risk against return.
• D) None of these describe problems with ROE.
• E) All of these describe problems with ROE.

---

Definitions:

Ambivalent

Experiencing conflicting emotions or thoughts regarding a particular situation or individual.

Disturbances in Affect

Variations from the normal range of emotions, which can include fluctuations in mood intensity and emotional stability, often observed in psychological disorders.

Social Withdrawal

The act of avoiding or reducing participation in social activities and interactions.

Avolition

A symptom of schizophrenia marked by apathy and an inability to start or complete a course of action.