Exhibit 25.7
Use the Information Below for the Following Problem(S)
Given the following information evaluate the performance of Tyler Incorporated (TI).
$$R _ { \text {TI } } = 0.18 \quad B _ { T I } = 1.06 \quad R _ { Y } = 0.06 \quad R = 0.11$$
-Refer to Exhibit 25.7.Calculate TI's selectivity.
A) 0.0113
B) 0.1200
C) 0.0687
D) 0.0530
E) 0.0696

Question

Exhibit 25.7
Use the Information Below for the Following Problem(S)
Given the following information evaluate the performance of Tyler Incorporated (TI).
 $$R _ { \text {TI } } = 0.18 \quad B _ { T I } = 1.06 \quad R _ { Y } = 0.06 \quad R = 0.11$$
-Refer to Exhibit 25.7.Calculate TI's selectivity.
A) 0.0113
B) 0.1200
C) 0.0687
D) 0.0530
E) 0.0696

Quizplus · Accepted Answer

Selectivity = RTI - Rₓ(Bₐ)
where Rₓ(Bₐ)= Rf + BTI(Rm - Rf)= 0.06 + 1.06(0.11 - 0.06)= 0.113
Selectivity = 0.18 - 0.113 = 0.0687

Exhibit 25 RTI =0.18BTI=1.06RY=0.06R=0.11R _ { \text {TI } } = 0.18 \quad B _ { T I } = 1.06 \quad R _ { Y } = 0.06 \quad R = 0.11RTI ​=0.18BTI​=1.06RY​=0.06R=0.11

Exhibit 25 $R _ { \text {TI } } = 0.18 \quad B _ { T I } = 1.06 \quad R _ { Y } = 0.06 \quad R = 0.11$