What is the difference between a bank's return on assets (ROA) and its return on equity (ROE)?
A. A bank's return on assets (ROA) is the ratio of a bank's after-tax profit to the value of its assets. Return on equity (ROE) is the ratio of the value of a bank's after-tax profit to the value of its capital.
B. A banks return on assets (ROA) is the ratio of a bank's after-tax profit to the value of its assets. Return on equity (ROE) is the ratio of the value of a bank's gross profit to the value of its capital.
C. A bank's return on assets (ROA) is the ratio of a bank's gross profit to the value of its assets. Return on equity (ROE) is the ratio of the value of a bank's after-tax profit to the value of its capital.
D. A bank's return on assets (ROA) is the ratio o a bank's gross profit to the value of its assets. Return on equity (ROE) is the ratio of the value of a bank's gross profit to the value of its capital.