Exhibit 25 -Refer to Exhibit 25

question 38

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.According to the Treynor Measure,which portfolio performed best?

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

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Definitions:

Financial Commitments

Obligations to pay money in the future, which can include debts, loans, or other financial responsibilities one has agreed to.

Direct Investment

An investment in the form of a controlling ownership in a business in one country by an entity based in another country, typically by buying the company or establishing new operations.

Global Market

The international exchange of goods, services, and capital, encompassing the full extent of activities and operations across countries.

Direct Investment

A form of investment where a company or individual acquires a controlling interest in a foreign business entity, often by purchasing its assets or shares.