smithbrandonr2118 smithbrandonr2118

14-08-2020
Business

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The return on investment can be obtained by multiplying return on equity times asset turnover.
A. True
B. False

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ogechukwubenedict ogechukwubenedict

17-08-2020

Answer: B. False

Explanation: The return on investment defined as the benefit gained by an investor from an investment can not be obtained by multiplying return on equity times asset turnover making the assumption or statement wrong. However, the return on investment can be obtained by multiplying return on sales, which is a measure of how a firm turns sales into revenue, times asset turnover.

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