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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% Answer the questions: 1)

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%

Answer the questions:

1) which company has higher ROE and what is the reason of it?

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