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

Question

Quizplus · Accepted Answer

Return on equity (ROE) is a financial metric that measures the percentage return that shareholders have earned from their investment in a company over a specific period of time, usually a year. It is calculated by dividing a company's net income by its shareholders' equity. ROE does not necessarily represent the return shareholders have received during the past year, as it is a measure of profitability over a period of time.

Return on Equity Is the Return Stockholders Have Received During