Exhibit 25 -Refer to Exhibit 25

question 31

Multiple Choice

Exhibit 25.12
Use the Information Below for the Following Problem(S)
An analyst is considering investing in funds A, B, C, and D. The market portfolio, M, is expected to be 11% next period and the risk-free rate of return is 3%. The market portfolio had a standard deviation over the past ten years of 0.20. The analyst gathered the following information on the four funds.
$$\begin{array} { c c c c } \text { Atack } & \text { Return } & \text { Eetr } & \text { Б } \\\hline \text { A } & 17 \% & 1.7 & .21 \\B & 20 \% & 2.1 & .25 \\\text { C } & 10 \% & 0.9 & .12 \\D & 15 \% & 1.2 & 16\end{array}$$
-Refer to Exhibit 25.12.Rank the four funds and market portfolio in order from highest to lowest based on their Sharpe measures.

• A) A, B, C, D, M
• B) B, C, M, D, A
• C) C, A, M, D, B
• D) D, A, B, M, C
• E) D, B, A, C, M

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from the face value and redeemed at maturity for the full face value.

Escheats

The process by which unclaimed or abandoned property reverts back to the state.

Surviving Relatives

Family members who remain alive after an individual has passed away, often considered in legal contexts for inheritance or benefits.

Executor

The individual appointed to administer the estate of a deceased person in accordance with their will.