8. More on ratio analysis industry. ROE is considered a very important measure, and managers strive to make the company's ROE numbers look good. and investors often use returm on equity (ROE) to compare profitability of a company with other fims in the An increase in ROE would imply an increase in shareholder wealth. Based on your understanding of the uses and limitations of ROE, a rational investor is likely to prefer an investment option that has: 0 High ROE and low risk O High ROE and high risk Suppose you are trying to decide whether to invest in a company that generates a high expected ROE, and you want to conduct further analysis on the company's performance. If you wanted to conduct a comparative analysis for the current year, you would: O Compare the firm's financial ratios with other firms in the industry for the.current year O Compare the fim's financial ratios for the current year with its ratios in previous years You decide also to conduct a quaitative enalysis based on the factors summerized by the American Association of Investors (AAIl). According to your understanding, a company with one key customer is considered to be risky than companies with several customers Individual