A firm with an average return on assets, but a high return on equity, was probably able to achieve this by keeping debt down to a very low level.

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Quizplus · Accepted Answer

A high return on equity (ROE) compared to an average return on assets (ROA) typically indicates the firm is using a higher level of debt to finance its operations, as ROE can be enhanced by financial leverage.

A Firm with an Average Return on Assets, but a High