Exhibit 25 -Refer to Exhibit 25

question 90

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 Treynor performance 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:

Alcohol

A chemical compound commonly found in beverages such as beer, wine, and spirits, known for its psychoactive effects on humans.

Mental Development

The process of growth and changes in intellectual, emotional, and social abilities and capacities throughout life.

Temperament

A person's or animal's nature, especially as it permanently affects their behavior.

Emotional Reactivity

The intensity and speed at which an individual experiences emotions in response to stimuli; can vary greatly among individuals.