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- In a margin account, the interests should be higher than the returns. TRUE OR FALSE?Explain the relationship between return on equity (ROE), return on asset (ROA), and leverage effect. Please define these terms before discussion.Which of the following is NOT a profitability ratio? Select one:a. Return on Equityb. Net Profit Marginc. Return on Assetsd. Average Collection Period
- can u calculate the NPV, instead of inflows, use net profit instead4. There is a difference in return on Total Assets and the return on Total Equity. a. What is the difference between the two? b. Which ratio of the two is normally higher?A situation in which one focuses on individual decisions rather than looking at them in the context of related decisions. Please match the description with the corresponding term below. A.Equity Premium B.Statistically Independent C.Equity Premium Puzzle D.Narrow Framing