Question

The difference between ROE and NIR is called spread. True False Explanation of answer. Thank you

The difference between ROE and NIR is called spread.

True

False

Explanation of answer. Thank you

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Answer #1

Solution:

False, Spread is the difference between the net financial return (NFR) and the return on net operating activities (RNOA).

Positive spread = ROA > NIR

Negative spread = ROA < NIR

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