Multiple choice general knowledge

ROE stands for?

  1. Rate of expenditure

  2. Rate of expenses

  3. Return on equity

  4. Rate of Equity
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

ROE stands for Return on Equity, a profitability ratio that measures a company's ability to generate profits from shareholders' equity. It's calculated as Net Income / Shareholders' Equity. 'Rate of expenditure' and 'Rate of expenses' are not standard financial metrics. Option D ('Rate of Equity') is grammatically incorrect and not a recognized financial term.

Keep practicing — related questions