Difference between bank return on assets-return on equity

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What is the difference between a bank's return on assets (ROA) and its return on equity (ROE)?

A. A bank's return on assets (ROA) is the ratio of a bank's after-tax profit to the value of its assets. Return on equity (ROE) is the ratio of the value of a bank's after-tax profit to the value of its capital.

B. A banks return on assets (ROA) is the ratio of a bank's after-tax profit to the value of its assets. Return on equity (ROE) is the ratio of the value of a bank's gross profit to the value of its capital.

C. A bank's return on assets (ROA) is the ratio of a bank's gross profit to the value of its assets. Return on equity (ROE) is the ratio of the value of a bank's after-tax profit to the value of its capital.

D. A bank's return on assets (ROA) is the ratio o a bank's gross profit to the value of its assets. Return on equity (ROE) is the ratio of the value of a bank's gross profit to the value of its capital.

Reference no: EM131532368

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