Exhibit 25 -Refer to Exhibit 25

question 25

Multiple Choice

Exhibit 25.4
Use the Information Below for the Following Problem(S)
The data presented below has been collected at this point in time.
$$\begin{array} { l l c c c } \text { Fund } & \text { Beta } & \text { Deviation(4) } & \text { Return(4) } & \text { Re (46) } \\\hline \text { AAA } & 1.05 & 4.98 & 16 & 6 \\\mathrm { BBB } & 1.00 & 4.04 & 15 & 6 \\\text { CCC } & 0.92 & 3.13 & 11 & 6 \\\text { Market } & 1.00 & 375 & 13 & 6\end{array}$$
-Refer to Exhibit 25.4.Compute the Treynor Measure for the CCC fund.

• A) 5.43
• B) 2.74
• C) 2.19
• D) 2.00
• E) 1.65

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Definitions:

Setup Cost

The expenses incurred to prepare equipment, processes, or systems for manufacturing an order or batch of product.

Carrying Cost

The total cost of holding inventory, including storage, handling, insurance, and opportunity costs, over a certain period of time.

Safety Stock

Additional inventory held to protect against variability in demand or supply, ensuring that stockouts are minimized and service levels are maintained.

Lead Time

The total period needed to fulfill an order from the moment it is placed until it is delivered to the customer.