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

question 97

Multiple Choice

The mean return on equity (ROE) for a group of firms in an industry is 15% with a variance of 9%. 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:

Critical Race Theory

An intellectual movement and framework that examines society and culture as they relate to categorizations of race, law, and power.

Race

A social construct that categorizes human populations based on physical characteristics such as skin color, facial features, and hair texture.

Racialize

The process by which certain groups are classified or categorized based on perceived racial characteristics.

Dominant Groups

Groups in society that possess a disproportionate amount of power, wealth, and social status.