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Which of the following is true regarding the Return on Equity (ROE) ratio? ROE is an important measure of managements effectiveness on the firms profitability

Which of the following is true regarding the Return on Equity (ROE) ratio? ROE is an important measure of managements effectiveness on the firms profitability ROE is easier to compare across firms than ROA because it is independent of the firms financing policy ROE is negatively related to the firms ability to turn assets into sales ROE is unrelated to the firm's net profit margin None of the Above

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