Research shows that ROEs tend to revert to a long-run equilibrium after about 5 years.

Name: Research shows that ROEs tend to revert to a long-run equilibrium after about 5 years.
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Research has shown that return on equity (ROE) tends to revert to a long-run equilibrium after about 5 years. This means that companies that have abnormally high or low ROEs will eventually return to a more typical or average ROE over time.

Research Shows That ROEs Tend to Revert to a Long-Run