One of the Three Major Shortcomings of Return on Equity

question 49

True/False

One of the three major shortcomings of return on equity is that it ignores risk.

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Definitions:

Sodium Hydroxide

A highly caustic compound, also known as lye, used in many industrial and chemical processes.

Lye

A strong alkaline solution, often sodium or potassium hydroxide, used in cleaning, soap making, and food preparation.

Acid Base

Refers to the mechanisms the body uses to maintain its normal acidic (pH less than 7) or basic (pH greater than 7) environment.

Boric Acid

A weak, water-soluble acid used as an antiseptic, insecticide, and flame retardant, among other applications.