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Exit VCEDump 8008 PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition

Q13 Single choice

A key problem with return on equity as a measure of comparative performance is:

A
that return on equity is not adjusted for risk
B
that return on equity are not adjusted for cash flows being different from accounting earnings
C
that return on equity measures do not account for interest and taxes
D
that return on equity ignores the effect of leverage on returns to shareholders

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