Question: Institutional Information Systems (5 points) Two major profitability indicators from financial statements include the rate of return on assets (ROA) and the rate of return

Institutional Information Systems (5 points)

Two major profitability indicators from financial statements include the rate of return on assets (ROA) and the rate of return of equity (ROE); that is, ROA = (Net Income/Average Assets) and ROE =Net Income/Average Equity Capital.

Suppose ROA is 1.37%., explain the meaning of such measurement.
If ROE is 14%, what is the meaning?

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