Calculate the firm return on equity

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Reference no: EM131816299

1. If you owned a diversified portfolio of two dozen stocks and you thought the market was heading down, you could appropriately protect your capital by:

A) purchasing stock-index calls. B) selling stock-index puts. C) purchasing stock-index puts. D) simultaneously buying an interest rate call and a currency put.

2. A firm has return on assets (ROA) of 15 percent, and debt-equity ratio of 60 percent. Calculate the firm's return on equity (ROE).

A. 24 percent B. 21 percent C. 12 percent D. 18 percent

Reference no: EM131816299

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