Which of the following is not a component of return on equity (ROE)?

Select one:

a. Equity/sales

b. Net Income/sales

c. Total assets/equity

d. Sales/total assets

e. Net Profit Margin

26. Assume an investor with the following utility function: U = E(r) - 3/2(s2). To maximize her expected utility, she would choose the asset with an expected rate of return of _______ and a standard deviation of ________, respectively.

Select one:

a. 12%; 20%

b. 10%; 15%

c. 10%; 10%

d. 8%; 10%