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Reading 17 exhibit 34 RoAE and PORoAE

Hi, maybe because its past midnight and have been grinding the books lately. I don’t understand the chart.

How is it possible to Have a return on average equity at 12.20% and pretax operating return on average equity of 9.00%?

I mean, shouldn’t the pretax be higher by law?

Thank you.

Edit: its on page 277 of CFAI

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Return on Average Equity uses net income in the numerator.

Pretax Operating Return on Average Equity uses pretax operating income in the numerator.

Obviously, there was some non-operating income.

Simplify the complicated side; don't complify the simplicated side.

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got it. thank you!

You’re welcome.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/