Schweser Mock #28

Why is the ROE method superior to the average EPS method for computing normalized EPS? WTF is the difference?

EPS method just averages the EPS. So a High EPS + a Low EPS – kind of averaged out in the stuff. ROE - average = Average of NI/CE --> so when NI is high - CE is high as well, NI is Low - CE is low. So it is a more averaged number.