35) ( 5 pts) Use the information for Apple and Microsoft to answer the following question FOR FY 2010 ONLY. Is risk explaining the difference in the ROE for Apple vs. the ROE for Microsoft?

A. Yes

B. No

Please explain.

for explanation. Click numbers for transparency AAPL US Equity 90 Settings 97) Actions 98 Out Apple Inc 1 Key Stats 31/5 3B/S 4C/F 9 Ratios Segments 7 10 Profitability 12 Growth Credit 13 Credit 14 Liquidity 19 Working Capital In Millions (except Per Share) FY 2011 FY 2010 12 Months Ending 2011-09-24 2010-09-25 Tax Burden 1.1. Net Inc to Comn/Pre-Tax Profit 75.78 75.58 Adjustment Factor Lol Normiad Net Inc/Net Inc to Cmn 1.00 1.00 Interest Burden Lil - Pre-Tax Profit/EBIT * 101.23 100.84 Operating Margin 111 EBIT/Revenue 31.22 28.19 Asset Turnover Lil Revenue/Avg Assets 1.13 1.06 Leverage Ratio Lil Avg Assets/Avg Equity 1.54 1.54 Lul Adjusted Return on Equity 41.67 35.28 LI! 5 Year Average Adj ROE Lil Payout Ratio Lil Sustainable Growth Rate 33.85 0.00 41.67 30.08 0.00 35.28