It is widely known that grocery chains have low profit margins-on average they earn about 1 percent

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It is widely known that grocery chains have low profit margins-on average they earn about 1 percent on sales. How would you explain the fact that their ROE is about 12 percent? Does this seem logical?

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Investment Analysis and Portfolio Management

ISBN: 978-0538482387

10th Edition

Authors: Frank K. Reilly, Keith C. Brown

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