问题如下:
If an analyst chooses potential stock investment based on ROE, which of following is required to consider as well?
选项:
A.positive earnings.
B.negative earnings
C.negative equity
解释:
A is correct.
If earnings and equity are negative at the same time, the ROE will be positve, but this stock is not good investment. Therefore, positve earnings should be required.
不是很理解答案,如果earning是正数,equity是负数呢?由于正负数的各种组合,我觉得abc三个答案都要考虑