Question: 1) Based on the calculation , discuss relationship between ROA anfd ROE Acompany Z company Average of ROA 12% A 10% Z Standard deviation of

1) Based on the calculation , discuss relationship between ROA anfd ROE

Acompany

Z company

Average of ROA

12% A

10% Z

Standard deviation of ROA

5.89% A

5.57% Z

Standard deviation of ROE

8.45% A

7.13% Z

2) which company has higher ROE and what is the reason of it?

3) which company has more volatility of roe and what is the reason of it ?

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