What is not true about the net return on equity? 1.If other conditions are constant, ROE increases as the debt ratio increases. 2. It represents the profitability of the portion invested by equity capital. 3. Equity includes paid-in capital, capital surplus, retained earnings, and preferred stock capital. 4.If the net return on equity increases, stock prices are likely to rise. 5.If other conditions are constant, the ROE increases as the ROI decreases.