Question: A company's return on equity ( ROE ) was higher than its return on investment ( ROI ) . What could have caused this difference?

A company's return on equity (ROE) was higher than its return on investment (ROI). What could have caused this difference?
Multiple Choice
The company's ROI was higher than its cost of debt.
The company's ROI was lower than its cost of debt.
The company's ROI was equal to its cost of debt.
None of the answers provides an explanation as to why the two ratios would have differed.

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