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1) Based on the calculation , discuss relationship between ROA anfd ROE A company Z company Average of ROA 12% 10% Standard deviation of ROA
1) Based on the calculation , discuss relationship between ROA anfd ROE
| A company | Z company |
Average of ROA | 12% | 10% |
Standard deviation of ROA | 5.89% | 5.57% |
| ||
Standard deviation of ROE | 8.45% | 7.13% |
2) which company has higher ROE and what is the reason of it?
3) which company has more volatility of roe and what is the reason of it ?
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