Exhibit 25 -Refer to Exhibit 25

question 35

Multiple Choice

Exhibit 25.2
Use the Information Below for the Following Problem(S)
The portfolios identified below are being considered for investment. Assume that during the period under consideration Rf = .04.
$$\begin{array} { c c c c } \text { Partilio } & \text { Return } & \text { Beta } & \text { σ } \\\hline W & 0.18 & 1.8 & 0.06 \\\mathbf { X } & 0.21 & 0.9 & 0.10 \\\mathbf { Y } & 0.13 & 0.7 & 0.03 \\Z & 0.16 & 1.5 & 0.07\end{array}$$
-Refer to Exhibit 25.2.Using the Sharpe Measure,which portfolio performed best?

• A) W
• B) X
• C) Y
• D) Z
• E) Two portfolios are tied

---

Definitions:

Nonprobability Sampling

A sampling technique where the samples are gathered in a process that does not give all the individuals in the population equal chances of being selected.

Lotteries

Games of chance where winners are selected by drawing lots, often used as a means of raising funds.

Stratified Random Sampling

A sampling technique that divides the population into distinct subgroups, or strata, and randomly selects samples from each stratum.

Standard Error

A measure of the variability or dispersion of a sample statistic, such as the sample mean, from the population mean.