ROE - which equity

CFA Level II
#1

Today in mock PM 2011 I encountered a question which ask for G in order to calculate P of a stock.

They gave both ending and beginning equity, which make me a bit confused. Normally you would take average equity, right? That makes more sense,. So im just wondering should I just use ending equity or is there any clear advice out there in Curriculum (that I may not have covered) ?

Thanks in advance/

#2

if you were looking to get the ROE from change in equity prices, you would take Price at the End - Price At the beggining + Dividend/ price at the begining.

literally measuring - how much you made in % terms by holding that thing for whatever period.

#3

I think there was an errata item on this. The question should have stated to use beginning equity.