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. EquityFA Click numbers for transparency AAPL US Equity 90) Settings 97) Actions 98) Output 99) Feedback Financial Analysis Apple Inc Periods 10 Annuals Currency USD D Key Stats 21/5 3 B/S 4 C/F 9 Ratios Segments 7) Add 9 ESG 9 Custom 11) Profitability 17 Growth 13 Credit 14 Liquidity 19 Working Capital 10 Yield Analysis 17) DuPont Analysis In Millions (except Per Share) FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 12 Months Ending 2011-09-24 2010-09-25 2009-09-26 2008-09-27 2007-09-29 2006-09-30 Tax Burden Net Inc to Comn/Pre-Tax Profit 75.78 75.58 68.25 68.39 69.82 70.58 Adjustment Factor 1. Normlzd Net Inc/Net Inc to Cmn 1.00 1.00 1.00 1.00 1.00 1.00 Interest Burden Il Pre-Tax Profit/EBIT * 101.23 100.84 102.78 107.45 113.59 114.88 Operating Margin LEBIT/Revenue * 31.22 28.19 27.36 22.21 17.93 12.70 Asset Turnover 1.1Revenue/Avg Assets 1.13 1.06 1.03 1.23 1.17 1.35 Leverage Ratio Avg Assets/Avg Equity 1.54 1.54 1.55 1.66 1.72 1.65 Intl Adjusted Return on Equity 41.67 35.28 30.54 33.23 28.51 22.85 1.1 5 Year Average Adj ROE L.1! Payout Ratio Sustainable Growth Rate 33.85 0.00 41.67 30.08 0.00 35.28 27.27 0.00 30.54 22.45 0.00 33.23 16.16 0.00 28.51 11.05 0.00 22.85 100% Zoom + Australia 61 2 9777 8600 Brazil 5511 3048 4500 Europe 44 20 7330 7500 Germany 49 69 9204 1210 Hong Kong 852 2977 6000 Japan 81 3 3201 8900 Singapore 65 6212 1000 U.S. 1 212 318 2000 Copyright 2012 Bloomberg Finance L.P. SN 106214 H190-2910-6 05-Jul-12 14:46:34 EDT GMT-4:00 for explanation. EquityFA Click numbers for transparency MSFT US Equity 96) Settings 97) Actions - 98 Output 99 Feedback Financial Analysis Microsoft Corp Periods 10 Annuals Currency USD 1 Key Stats 21/5 3 B/S 4 C/F Ratios Segments 7) Add ESG 9 Custom 11 Profitability 12 Growth 13) Credit 14 Liquidity 15 Working Capital 10 Yield Analysis 17) DuPont Analysis In Millions (except Per Share) FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 12 Months Ending 2011-06-30 2010-06-30 2009-06-30 2008-06-30 2007-06-30 2006-06-30 Tax Burden Ll Net Inc to Comn/Pre-Tax Profit 82.47 75.00 73.50 74.25 69.97 68.99 Adjustment Factor . Normlzd Net Inc/Net Inc to Cmn 0.98 1.00 1.07 1.02 1.05 1.05 Interest Burden L Pre-Tax Profit/EBIT * 103.35 103.54 95.79 105.88 108.51 110.87 Operating Margin LI EBIT/Revenue * 38.83 38.66 35.41 37.23 36.23 37.20 Asset Turnover Il Revenue/Avg Assets 0.72 0.76 0.78 0.89 0.77 0.63 Leverage Ratio L11 Avg Assets/Avg Equity 1.89 1.91 1.99 2.02 1.86 1.59 L! Adjusted Return on Equity 44.01 43.87 41.28 53.37 41.36 30.05 L11 5 Year Average Adj ROE - Payout Ratio Il Sustainable Growth Rate 44.78 23.33 34.38 41.99 24.24 33.15 37.88 31.77 26.21 33.53 23.10 40.36 26.73 27.36 28.70 22.63 29.00 20.28 + 100% >> Zoom Australia 61 2 9777 8600 Brazil 5511 3048 4500 Europe 44 20 7330 7500 Germany 49 69 9204 1210 Hong Kong 852 2977 6000 Japan 81 3 3201 8900 Singapore 65 6212 1000 U.S. 1 212 318 2000 Copyright 2012 Bloomberg Finance L.P. SN 106214 H190-2910-6 05-Jul-12 14:47:26 EDT GMT-4:00