Exhibit 25 -Refer to Exhibit 25

question 14

Multiple Choice

Exhibit 25.1
Use the Information Below for the Following Problem(S)
The portfolios identified below are being considered for investment. During the period under consideration Rf = .03.
$$\begin{array} { c c c c } \text { Partfolid } & \text { Return } & \text { Beta } & \text { σ } \\\hline \text { A } & 0.16 & 1 . 0 & 0.15 \\B & 0.22 & 1.5 & 0.10 \\\text { C } & 0.11 & 0.6 & 0.08 \\D & 0.18 & 1.1 & 0.12\end{array}$$
-Refer to Exhibit 25.1.According to the Treynor Measure,which portfolio performed best?

• A) A
• B) B
• C) C
• D) D
• E) Two portfolios are tied

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Definitions:

Exponential Expression

A mathematical phrase where numbers or variables are raised to a power or exponent.

Associative Property

A mathematical rule stating that the way in which numbers are grouped in operations does not change their result.

Multiplication

A mathematical operation where a number is added to itself a certain number of times.

Decimal Places

The number of digits to the right of the decimal point in a number, determining its precision.