Exhibit 25.6
Use the Information Below for the Following Problem(S)
Given the following information evaluate the performance of Cloud Incorporated (CI).
$$\mathrm { R } _ { \mathrm { CI } } = 0.17 \quad \mathrm {~B} _ { \mathrm { GI } } = 1.05 \quad \mathrm { R } _ { \mathrm { I } } = 0.07 \quad \mathrm { R } _ { \mathrm { m } } = 0.12$$
-Refer to Exhibit 25.6.Calculate CI's selectivity.
A) 0.1225
B) 0.1000
C) 0.0525
D) 0.0475
E) 0.0325

Question

Exhibit 25.6
Use the Information Below for the Following Problem(S)
Given the following information evaluate the performance of Cloud Incorporated (CI).
 $$\mathrm { R } _ { \mathrm { CI } } = 0.17 \quad \mathrm {~B} _ { \mathrm { GI } } = 1.05 \quad \mathrm { R } _ { \mathrm { I } } = 0.07 \quad \mathrm { R } _ { \mathrm { m } } = 0.12$$
-Refer to Exhibit 25.6.Calculate CI's selectivity.
A) 0.1225
B) 0.1000
C) 0.0525
D) 0.0475
E) 0.0325

Quizplus · Accepted Answer

Selectivity = RCI - Rₓ(Bₐ)
where Rₓ(Bₐ)= Rf + BCI(Rm - Rf)= 0.07 + 1.05(0.12 - 0.07)= 0.1225
Selectivity = 0.17 - 0.1225 = 0.0475

Exhibit 25 -Refer to Exhibit 25