Exhibit 25 -Refer to Exhibit 25

question 25

Multiple Choice

Exhibit 25.4
Use the Information Below for the Following Problem(S)
The data presented below has been collected at this point in time.
$$\begin{array} { l l c c c } \text { Fund } & \text { Beta } & \text { Deviation(4) } & \text { Return(4) } & \text { Re (46) } \\\hline \text { AAA } & 1.05 & 4.98 & 16 & 6 \\\mathrm { BBB } & 1.00 & 4.04 & 15 & 6 \\\text { CCC } & 0.92 & 3.13 & 11 & 6 \\\text { Market } & 1.00 & 375 & 13 & 6\end{array}$$
-Refer to Exhibit 25.4.Compute the Treynor Measure for the CCC fund.

• A) 5.43
• B) 2.74
• C) 2.19
• D) 2.00
• E) 1.65

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Definitions:

Comparative Advantage

The ability of an individual or country to produce a certain good or service at a lower opportunity cost than others.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than competitors.

Computers

Electronic devices capable of executing a set of instructions to perform a vast array of tasks, from basic calculations to complex data processing and analysis.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another.