Ask Question
15 June, 20:37

Based on your understanding of the uses and limitations of ROE, a rational investor is likely to prefer an investment option that has:

A. High ROE and high risk

B. High ROE and low risk

+5
Answers (1)
  1. 15 June, 23:13
    0
    B is the correct option High ROE and Low Risk

    Explanation:

    The return on equity shows the ability of the firm to earn for equity investors. If two investments have same ROE and one has lower risk. Then the rational invester will choose that investment which has a low risk.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Based on your understanding of the uses and limitations of ROE, a rational investor is likely to prefer an investment option that has: A. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers