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Quantitative Finance · Begrippenlijst

Wat is Return on equity?

Definition 1.10 The Desk and the Firm · Hoofdstuk 1 — The Economics of a Trading Firm

A firm’s (or a business’s) return on equity, ROE, is its net income over a period divided by its average shareholders’ equity over the period; for a division of a larger firm, the equity is the share of the group’s equity the firm attributes to it.

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