Investment Broad Stock Market Index Small Capitalization Market Index Local Casino Daily Monthly Yearly Time Period Probability of Price Increase, Daily Time 0.5030 0.5005 0.4900 1 30 365 Probability of Price Decrease, Daily 0.4970 0.4995 0.5100 Size of Price Change 0.0550 0.1050 0.0500 Required: Using the information in the tables above, please calculate the expected return of each investment over one day, one month, and one year. (Use cells A3 to D10 from the given information to complete this question.)

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Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.