Exhibit 25 -Refer to Exhibit 25

question 97

Multiple Choice

Exhibit 25.8
Use the Information Below for the Following Problem(S)
$$\begin{array}{l}\text { Weights }\\\begin{array} { l l } \text { Palic } & \text { Actural } \\\hline 50 \% \text { stacks } & 60 \% \text { stacks } \\50 \% \text { bands } & 4 [ 1 / \text { bands } \\\text { Returns } & \\\text { Index } & \text { Actural } \\\hline \text { 98 stocks } & 9 \% \text { stocks } \\5 \% \text { bonds } & 7 \% \text { bonds }\end{array}\end{array}$$
-Refer to Exhibit 25.8.Which of the following statements is true?

• A) Sector/security selection hurt the portfolio performance; returns were 1.4% less than if the manager invested the funds in stocks and bond indexes.
• B) Sector/security selection improved the port-folio performance by 1.4%; each sector return was higher than for index value.
• C) Sector/security selection hurt the portfolio performance; returns were 6.8% less than if the manager invested the funds in stocks and bond indexes.
• D) Sector/security selection improved the port-folio performance by 6.8%; each sector return was higher than for index return.
• E) None of the above is a true statement.

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Definitions:

Liquidating Dividend

A type of payment made by a corporation to its shareholders during its liquidation or dissolution, often representing the return of capital rather than profit.

Special Dividend

A one-time payment made by a company to its shareholders, often issued in response to exceptionally strong earnings or when a large amount of excess cash is on hand.