A Clear Distinction Between Return on Assets and Return on Equity

Multiple Choice

A clear distinction between return on assets and return on equity is that return on assets:

A) must always be a smaller percentage than is return on equity.
B) is a measure of management's investment decisions that excludes any consideration of how the investments were financed.
C) is of greater interest to investors than is return on equity.
D) measures operating leverage while return on equity measures financial leverage.