Return on equity is the return stockholders have realized during the past year.

Name: Return on equity is the return stockholders have realized during the past year.
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Question

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Return on equity (ROE) is a measure of profitability that shows how much profit a company has generated for each dollar of shareholder equity. It is calculated by dividing the company's net income by its shareholders' equity. ROE is not necessarily the return stockholders have realized during the past year.

Return on Equity Is the Return Stockholders Have Realized During