Answer: False
Explanation:
The return on equity is used to know how profitable a business is when it's being compared to its equity.
The sentence in the question that the graphical probability distribution of ROE for a firm that uses financial leverage would tend to be more peaked than the distribution if the firm used no leverage, other things held constant is false.
The statement is not true because in such scenario, the graphical probability distribution will be less peaked than the distribution.
