According to Google “define ROE”:
“The mass of eggs contained in the ovaries of a female fish or shellfish, typically including the ovaries themselves…”
So my question is… which one of these is the correct definition?
A. ROE(2011) = Net Income(2011) / Book Value(2011)
B. ROE(2011) = Net Income(2011) / Book Value(2010)
C. Other: __________
I’ve done some practice questions (CFAI) and have seen both of these definitions used in answers. So I’m confused about which one is right. Personally, I think B makes more sense. But A has definitely appeared in many places, such as CFAI Mock 2011 (PM session, Question 49).