Exhibit 25 -Refer to Exhibit 25

question 80

Multiple Choice

Exhibit 25.9
Use the Information Below for the Following Problem(S)
Consider the following information for four portfolios, the market and the risk free rate (RFR) :
$$\begin{array} { l l l l } \text { Partidio } & \text { Return } & \text { Eet. } & \text { ED } \\\hline \text { A1 } & 0.15 & 1.25 & 0.182 \\\text { A2 } & 0.1 & 0.9 & 0.223 \\\text { A3 } & 0.12 & 1.1 & 0.138 \\\text { A4 } & 0.08 & 0.8 & 0.125 \\\text { Market } & 0.11 & 1 & 0.2 \\\text { RFR } & 0.03 & 0 & 0\end{array}$$
-Refer to Exhibit 25.9.Calculate the Treynor Measure for each portfolio.

• A) A1 = 0.0625, A2 = 0.0778, A3 = 0.0818, A4 = 0.096
• B) A1 = 0.096, A2 = 0.0778, A3 = 0.0818, A4 = 0.0625
• C) A1 = 0.096, A2 = 0.0818, A3 = 0.0778, A4 = 0.0625
• D) A1 = 0.0778, A2 = 0.096, A3 = 0.0818, A4 = 0.0625
• E) None of the above

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Definitions:

Raw Materials

The basic substances in their natural, modified, or semi-processed state used as inputs for manufacturing.

Storeroom

A room or space used to store supplies, materials, and equipment awaiting use in production or operations.

Overapplied Manufacturing Overhead

This occurs when the manufacturing overhead allocated to products exceeds the actual manufacturing overhead costs incurred.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including maintenance, utilities, and quality control, that cannot be directly traced to specific products.