What is the full form of "ROE"?

A. Return on Equity

B. Ratio of Exchange

C. Rate of Exchange

D. Rate of Earning

Answer: Option A

Solution(By Examveda Team)

Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholder's equity. Because shareholder's equity is equal to a company’s assets minus its debt, ROE is considered the return on net assets. ROE is considered a measure of a corporation's profitability in relation to stockholder's equity.