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:

Current Path

The path or route that electric current follows through a circuit or an electrical device.

Series-Parallel

A configuration in electrical circuits where components are arranged in a combination of series and parallel connections to manage voltage and current distribution.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment by comparing the present value of its cash inflows to the present value of its cash outflows.