Which of the following statements concerning Return on Equity (ROE) are correct? Select two statements.

A. ROE is a forward-looking performance measure.
B. Financial leverage increases ROE. Therefore, the management of a company should fully finance its assets through leverage to maximize the companys value.
C. ROE is a direct measure of a companys long-term performance.
D. A company can increase its ROE by improving the companys efficiency in asset management.
E. ROE can decline even when gross margin increases if operating margin decreases.