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

question 10

Multiple Choice

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

• A)0.2
• B)0.6
• C)1.7
• D)5.0

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Definitions:

Transfer of Assets

The act of moving ownership of assets from one party to another, which could involve selling, gifting, or exchanging.

Ledger

A book or collection of financial accounts where all transaction records for a business are maintained.

Specific Asset

An identifiable and tangible asset that is required or utilized for a particular function or project.

Decreases

A decrease refers to a reduction in the size, amount, or number of something.