An investor with a leverage ratio of 5 has a cost of debt of 4%pa and buys a portfolio of shares with a yield of 8%. What are the investor's ROA and ROE?

ROA = 3.8%; ROE = 19%

ROA = 4.8%; ROE= 24%

ROA = 4.2%; ROE = 21%

ROA = 3.2%; ROE = 16%

ROA = 8%; ROE = 12%