AIM 1: List the CAPM’s underlying assumptions.

1、The assumption that returns are normally distributed means that investors:

A) are risk averse.

B) have the same horizon.

C) do not need to consider transactions costs.

D) only consider the mean and standard deviation of the returns.

The correct answer is D

If a distribution is normally distributed, then it is completely described by the mean and standard deviation. Then, these are the only two parameters in the investors’ utility functions.

2、Which of the following statements about asset pricing models is most accurate?

A) Assuming assets are not perfectly positively correlated, the systematic risk of a portfolio decreases as more assets are added. 

B) Adding the risk-free asset to a portfolio will reduce return and total risk.

C) According to the Capital Asset Pricing Model (CAPM), the expected rate of return of a portfolio with a beta of 1.0 is the market expected return.

D) It is difficult for the individual investor to achieve the benefits from diversification because significantly reducing risk requires the purchase of approximately 1,000 securities.

The correct answer is C

Diversification reduces unsystematic, or unique risk. With the risk-free asset and a portfolio of risky assets, the equation for the expected standard deviation is linear: wAsA .  A combination of the risk free asset and a portfolio always gives more return for a given level of risk.  Risk tends to be reduced, but assuming that assets are not perfectly positively correlated, an investor can achieve the benefits of diversification by adding just one security (Markowitz). Studies have shown that approximately 18-30 stocks are needed for proper diversification. The main point is that the number of stocks required is small and is significantly less than all securities (and significantly less than 1,000 securities).

3、According to the capital asset pricing model, a negative risk premium:

A) is an impossibility.

B) would only occur if the covariance of a security’s return with the return on the market is positive.

C) would only occur if the covariance of a security’s return with the return on the market is negative.

D) would only occur if the covariance of a security’s return with the return on the market is zero.

The correct answer is C

A negative risk premium would occur if the beta of the security was negative, which would occur if the covariance of a security's return with the return on the market is negative.

4、All of the following are assumptions of the capital asset pricing model EXCEPT:

A) investors can borrow and lend at the same risk-free rate.

B) each investor seeks to maximize the expected utility of wealth at the end of his horizon.

C) the time horizons of investors are normally distributed.

D) investors have the same expectations concerning returns.

The correct answer is C

The CAPM assumes that investors all have the same horizon (as well as expectations). This means that the distribution of the horizons is not normal because normality implies a bell-shaped curve distribution, which would have a positive variance and, hence, dispersion.

5、Under the CAPM, which of the following can investors choose for their portfolios?

I.           The risk-free asset.

II.         The market portfolio.

III.        Assets that maximize return relative to asset-specific risk.

IV.      A portfolio (other than the market portfolio) on the efficient frontier of risky portfolios.

A) I and II only.

B) I only.

C) II and III only.

D) I, II and IV only.

The correct answer is A

All investors will combine the market portfolio with the risk-free asset. Asset-specific risk is not important and is actually eliminated with the choice of the market portfolio.

AIM 3: Define market efficiency, identify the three forms of market efficiency, and discuss the link between efficiency and the CAPM.

1、Which of the following statements is INCORRECT?

A) The strong-form EMH assumes cost free availability of all information, both public and private.

B) The weak-form EMH suggests that fundamental analysis will not provide excess returns while the semi-strong form suggests that technical analysis cannot achieve excess returns.

C) The semi-strong form EMH addresses market and non-market public information.

D) The weak-form EMH states that stock prices reflect historical public market information.

The correct answer is B

The weak-form EMH suggests that technical analysis will not provide excess returns while the semi-strong form suggests that fundamental analysis cannot achieve excess returns. The weak-form EMH assumes the price of a security reflects all currently available historical information. Thus, the past price and volume of trading has no relationship with the future, hence technical analysis is not useful in achieving superior returns.

The other choices are correct. The strong-form EMH states that stock prices reflect all types of information: market, non-public market, and private. No group has monopolistic access to relevant information; thus no group can achieve excess returns. For these assumptions to hold, the strong-form assumes perfect markets – information is free and available to all.

2、Which of the following forms of the EMH assumes that no group of investors has monopolistic access to relevant information?

A) Weak-form.

B) Semistrong-form.

C) Strong-form.

D) Both weak and semistrong form.

The correct answer is C

The strong-form EMH assumes that stock prices fully reflect all information from public and private sources. In addition, no group of investors has monopolistic access to information relevant to the formation of prices.

3、Which of the following is least likely an assumption behind the semistrong-form of the efficient market hypothesis (EMH)?

A) A large number of profit-maximizing participants.

B) The timing of news announcements are independent of each other.

C) Investors adjust their expectations rapidly when confronted with new information.

D) All information is cost-free and available to everyone at the same time.

The correct answer is D

The strong-form EMH assumes all information, both public and private, is cost-free and available to all investors at the same time.

4、The strong-form efficient market hypothesis (EMH) asserts that stock prices fully reflect which of the following types of information?

A) Market.

B) Public and private.

C) Market and public.

D) Public, private, and future.

The correct answer is B

The strong-form EMH assumes that stock prices fully reflect all information from public and private sources.

5、Which of the following statements on the forms of the efficient market hypothesis (EMH) is least accurate?

A) The semi-strong form EMH addresses market and non-market public information.

B) The strong-form EMH assumes perfect markets. 

C) The weak-form EMH suggests that technical analysis will not provide excess returns while the semi-strong form suggests that fundamental analysis cannot achieve excess returns.

D) The weak-form EMH states that stock prices reflect current public market information and expectations.

The correct answer is D

The weak-form EMH assumes the price of a security reflects all currently available historical information. Thus, the past price and volume of trading has no relationship with the future, hence technical analysis is not useful in achieving superior returns.

The other statements are true. The strong-form EMH states that stock prices reflect all types of information: market, non-public market, and private. No group has monopolistic access to relevant information; thus no group can achieve excess returns. For these assumptions to hold, the strong-form assumes perfect markets – information is free and available to all.

AIM 4: Calculate, compare, and evaluate the Treynor measure, the Sharpe measure, and Jensen’s alpha.

1、For a given portfolio, the expected return is 12% with a standard deviation of 22%. The beta of the portfolio is 1.1. The expected return of the market is 10% with a standard deviation of 20%. The risk-free rate is 4%. The Sharpe measure of the portfolio is:

A) 20.00.

B) 0.36. 

C) 7.27.

D) 0.10. 

The correct answer is B

The Sharpe Measure is the risk premium divided by the standard deviation, σ: Sharpe measure of portfolio “p” = [E(RP) - RF]/σP = [12 - 4]/22 = 0.363

2、Portfolio A earned a return of 10.23% and had a standard deviation of returns of 6.22%. If the return over the same period on Treasury bills (T-bills) was 0.52% and the return to Treasury bonds (T-bonds) was 4.56%, what is the Sharpe ratio of the portfolio?

A) 0.56.

B) 1.56.

C) 0.91.

D) 7.71.

The correct answer is B

Sharpe ratio = (Rp – Rf) / σp, where (Rp – Rf) is the difference between the portfolio return and the risk free rate, and σp is the standard deviation of portfolio returns. Thus, the Sharpe ratio is: (10.23 – 0.52) / 6.22 = 1.56. Note, the T-bill rate is used for the risk free rate.

3、

If the risk-free rate was 4.0% during the period 1991-2000, what is the Sharpe ratio for ABC Mutual Fund for the period 1991-2000?

A)    0.52.

B)    0.68.

C)   1.12.

D)   0.35.

The correct answer is D

Variance = (X ? mean)² / (n ? 1) = 744.10 / 9 = 82.68

Standard deviation = (82.68)^1/2 = 9.1

Sharpe Ratio = (mean return – risk-free rate) / standard deviation = (7.2 – 4) / 9.1 = 0.35

4、A portfolio of options had a return of 22% with a standard deviation of 20%. If the risk-free rate is 7.5%, what is the Sharpe ratio for the portfolio?

A) 0.147.

B) 0.267.

C) 0.725.

D) 0.568.

The correct answer is C

Sharpe ratio = (22% – 7.50%) / 20% = 0.725.

5、A portfolio has a return of 14.2% and a Sharpe’s measure of 3.52. If the risk-free rate is 4.7%, what is the standard deviation of returns?

A) 2.6%.

B) 3.9%.

C) 2.7%.

D) 3.1%.

The correct answer is C

Standard Deviation of Returns = (14.2% – 4.7%) / 3.52 = 2.6988.

6、The Treynor measure is correctly defined as a measure of a fund’s:

A) return earned compared to its systematic risk.

B) return earned compared to its unsystematic risk. 

C) excess return earned compared to its total risk. 

D) excess earned compared to its systematic risk. 

The correct answer is D

The Treynor measure is defined as a fund’s excess return (fund’s return minus the risk-free rate) divided by its systematic risk (beta).

7、Of the Sharpe, Treynor, and Jensen’s Alpha measures, when measuring the risk/return performance of actively managed portfolios, which is the most appropriate to use?

A) Treynor measure.

B) Sharpe ratio.

C) All three measures are equally appropriate.

D) Jensen's Alpha.

The correct answer is D

Jensen’s Alpha measures the value added of an active portfolio strategy.

8、An analyst has gathered the following information about the performance of an equity fund and the S& 500 index over the same time period.  

                                                         Equity Fund            S& 500

                    Return                                -12%                    -16%        

                    Standard Deviation                15%                     19%

                    Beta                                  1.18                     1.00

                    Risk-free rate is 6.00%

The difference between the Treynor measure for the equity fund and the Treynor measure for the S& 500 is:

A)    0.07.

B)    0.17.

C)   0.15.

D)   0.21.

The correct answer is A

The equity fund: (-0.12 – 0.06)/1.18 = -0.15

The S& 500: (-0.16 – 0.06)/1.00 = -0.22

The equity fund is (-0.15 – (-0.22) = 0.07 higher

9、An analyst has generated the following information about risk/return performance using the Sharpe ratio and the Treynor measure:

                                                            Equity Fund         S& 500

                           Sharpe ratio                     0.47                  0.42

                           Treynor measure              0.31                  0.34

Which of the following statements about the relative risk/return performance of the funds is TRUE?  The:

A)    Treynor measure shows the fund outperformed the S& 500 on a systematic risk-adjusted basis.

B)    Sharpe ratio shows the equity fund underperformed the S& 500 on a systematic risk-adjusted basis.

C)   Sharpe ratio shows the equity fund outperformed the S& 500 on a total risk- adjusted basis.

D)   Treynor measure shows the fund underperformed the S& 500 on a total risk-adjusted basis.

The correct answer is C

With either the Sharpe or Treynor methodology, a higher number means a higher risk-adjusted return. Since the Sharpe ratio is 0.05 higher, it outperformed the S& 500. Note that the key difference between the Sharpe and Treynor measures is that the Sharpe ratio measures return per unit of total risk, while Treynor measures return per unit of systematic risk.

10、An analyst has gathered the following information about the performance of an equity fund and the S& 500 index over the same time period.  

                                                               Equity Fund                 S& 500

               Return                                            13%                          10.5%              

               Standard Deviation                           22%                          20%

               Beta                                             1.21                          1.00

               Risk-free rate is 5.25%

The Treynor measure for the equity fund is:

A)    0.064.

B)    0.570.

C)   0.048.

D)   0.071.

The correct answer is A

(0.13 – 0.0525)/1.21 = 0.064.

11、The following performance data for an actively managed portfolio and the S& 500 Index is reported:

Risk-free rate = 6%.

Determine the Sharpe measure, Treynor measure, and Jensen's alpha for the actively managed portfolio.

A)    Sharpe measure = 1.04; Treynor measure = 0.14; Alpha = 0.04.

B)    Sharpe measure = 1.05; Treynor measure = 0.17; Alpha = 0.04.

C)   Sharpe measure = 1.06; Treynor measure = 0.12; Alpha = 0.02.

D)   Sharpe measure = 2.44; Treynor measure = 0.40; Alpha = 0.29.

The correct answer is D

Sharpe measure for active portfolio = (0.50 - 0.06)/0.18 = 2.44

Treynor measure for active portfolio = (0.50 - 0.06)/1.1 = 0.40

Alpha for active portfolio = 0.50– [0.06+(0.20 - 0.06) x 1.1)] = 0.29

12、Based on the results from determining the Sharpe measure, Treynor measure, and Jensen's alpha for the actively managed portfolio, does the portfolio manager outperform or underperform the S& 500 index?

A) Sharpe measure → underperform; Treynor measure → outperform; Alpha → outperform

B) Sharpe measure → outperform; Treynor measure → outperform; Alpha → outperform.

C) Sharpe measure → outperform; Treynor measure → underperform; Alpha → underperform.

D) Sharpe measure → underperform; Treynor measure → underperform; Alpha → underperform.

The correct answer is B

Sharpe measure for S& portfolio = (0.20 - 0.06)/0.15 = 0.93

Treynor Measure for S& portfolio = (0.20 - 0.06)/1.0 = 0.14

Alpha for S& portfolio = 0

Hence, the portfolio manager outperforms based on all the three performance evaluation methods.

13、Which of the following measures used to evaluate the performance of a portfolio manager is/are NOT subject to the assumptions of the capital asset pricing model (CAPM)?

A) Jensen's alpha.

B) Treynor measure.

C) Sharpe measure.

D) Jensen's alpha and the Treynor measure.

The correct answer is C

Both the Treynor measure and the Jensen's alpha assume that the CAPM is the underlying risk-adjustment model. The Sharpe measure on the other hand does not make this assumption. It uses total risk of a portfolio, unlike the Treynor measure and Jensen's alpha, which use the systematic (undiversifiable) risk as measured by beta to compute the risk-adjusted return of a portfolio.

14、The following information is available for the Trumark Fund:

The Trumark Fund has an average annual return of 12 percent over the last five years.

Trumark has a beta value of 1.35.

Trumark has a standard deviation of returns of 16.80 percent.

During the same time period, the average annual T-bill rate was 4.5 percent.

During the same time period, the average annual return on the S& 500 portfolio was 18 percent.

What is the Sharpe ratio for the Trumark Fund?

A) 5.56.

B) 0.80.

C) 7.50.

D) 0.45. 

The correct answer is D

Sharpe Ratio = Sj = (Rj – RF) / σj = (12 - 4.50) / 16.80 = 0.45

What is the Treynor measure for Trumark Fund?

A) 0.45.

B) 0.80.

C) -0.04.

D) 0.06.

The correct answer is B

Treynor measure = Tj = (Rj – RF) / βj = (.12 - .0450) / 1.35 = 0.0556

15、Jensen’s alpha for a portfolio measures the:

A) fund’s return in excess of the required rate of return given the systematic risk of the portfolio. 

B) fund’s return in excess of the required rate of return given the unsystematic risk of the portfolio.

C) difference between a fund’s return and the market return. 

D) difference between the fund’s Sharpe ratio and Treynor measure.

The correct answer is A

Jensen’s alpha measures the return above the required rate of return based on the fund’s systematic risk. Said differently, Jensen’s alpha is the amount of return earned by the fund over and above the return predicted for the fund based on the capital asset pricing model, given the fund’s systematic risk.

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16、The mean monthly return on U.S. Treasury bills (T-bills) is 0.42%. The mean monthly return for an index of small stocks is 4.56%, with a standard deviation of 3.56%. What is the Sharpe measure for the index of small stocks?

A) 10.60.

B) 16.56.

C) 3.48.

D) 1.16.

The correct answer is D

The Sharpe ratio measures excess return per unit of risk. (4.56 – 0.42) / 3.56 = 1.16.

17、Which of the following statements regarding the Sharpe ratio is most accurate? The Sharpe ratio measures:

A) excess return per unit of risk.

B) total return per unit of risk.

C) dispersion relative to the mean.

D) peakedness of a return distrubtion.

The correct answer is A

The Sharpe ratio measures excess return per unit of risk. Remember that the numerator of the Sharpe ratio is (portfolio return ? risk free rate), hence the importance of excess return. Note that dispersion relative to the mean is the definition of the coefficient of variation, and the peakedness of a return distribution is measured by kurtosis.

18、Johnson Inc. manages a growth portfolio of equity securities that has had a mean monthly return of 1.4% and a standard deviation of returns of 10.8%. Smith Inc. manages a blended equity and fixed income portfolio that has had a mean monthly return of 1.2% and a standard deviation of returns of 6.8%. The mean monthly return on Treasury bills has been 0.3%. Which of the following statements is most accurate?

A) Based on the Sharpe ratio, the performance of the Johnson portfolio is preferable to the performance of the Smith portfolio.

B) The Johnson portfolio has greater excess return per unit of risk than the Smith portfolio.

C) The Sharpe ratio shows that the Johnson and Smith portfolios have exhibited the same risk-adjusted performance.

D) Based on the Sharpe ratio, the performance of the Smith portfolio is preferable to the performance of the Johnson portfolio.

The correct answer is D

The Sharpe ratio for the Johnson portfolio is (1.4 - 0.3)/10.8 = 0.1019.

The Sharpe ratio for the Smith portfolio is (1.2 - 0.3)/6.8 = 0.1324.

The Smith portfolio has the higher Sharpe ratio, or greater excess return per unit of risk.

19、A higher Sharpe ratio indicates:

A) a lower risk per unit of return.

B) greater diversification in the portfolio.

C) lower volatility of returns.

D) a higher excess return per unit of risk.

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The Sharpe ratio is excess return (return ? Rf) per unit of risk (defined as the standard deviation of returns).

20、Portfolio A earned an annual return of 15% with a standard deviation of 28%. If the mean return on Treasury bills (T-bills) is 4%, the Sharpe ratio for the portfolio is:

A) 0.54.

B) 1.87.

C) 0.39.

D) 2.54.

The correct answer is C

(15 ? 4) / 28 = 0.39

21、Which Sharpe ratio indicates that Fund One earned a return on investment that is greater than the risk taken by the fund?

A) 1.5.

B) 0.5.

C) 1.0.

D) 0.

The correct answer is A

A Sharpe ratio of 1 indicates the risk and return of the investment are proportional, while a lower ratio indicates greater risk was taken and a higher ratio indicates less risk was taken to generate the return on investment.

22、Over the previous year, the average and variance of a portfolio’s returns was 0.18 and 0.09. The risk-free rate over the period was 0.03. The Sharpe ratio for the portfolio for the previous year is:

A) 0.5. 

B) 0.6. 

C) 1.5. 

D) 3.0.

The correct answer is A

The Sharpe ratio is the difference between the average of the portfolio’s return minus the risk-free rate, 0.15 = 0.18 ? 0.03, divided by the standard deviation, which is the square root of the variance: 0.3 = 0.090.5. The Sharpe ratio is 0.5 = 0.15/0.3.

23、An investment committee is changing the asset allocation of its portfolio to include large capitalization growth stocks. The committee is interviewing five potential fund managers. Which of the following risk-adjusted measures of performance should the committee rely upon to choose a manager?

A) Treynor measure.

B) Sharpe measure.

C) Information ratio.

D) M-squared measure.

The correct answer is A

An investor comparing different funds in the same category should use the Treynor measure. Compare each fund’s Treynor ratio and select the fund with the highest Treynor ratio.

24、The efficient market portfolio had a return of 12%. The risk-free rate was 6%. A portfolio has a beta of 1.2. If the portfolio return was 12%, which of the following is closest to the Treynor ratio for the portfolio?

A) 1.

B) 0.20.

C) 0.05.

D) 0. 

The correct answer is C

The Treynor ratio is the difference between the portfolio return and the risk-free rate divided by the beta: 0.05 = (0.12 - 0.06) / 1.2.

25、The efficient market portfolio had a return of 14%. The risk-free rate was 5%. A portfolio has a beta of 0.8. If the portfolio return was 11%, then Jensen’s alpha for the portfolio equals:

A) +3.000%.

B) -1.200%.  

C) +8.000%.

D) -0.375%.

The correct answer is B

Jensen’s alpha = -1.20% = 11% ? [5% + 0.8(14% ? 5%)]

26、

The table represents risk-adjusted returns across all fund categories. Which of the following represents the best risk-adjusted return?

A)  Portfolio B.

B)  Portfolio C.

C)  Portfolio A.

D)  Portfolio D.

The correct answer is D

The Sharpe measure should be used since all funds are considered. Portfolio D should be selected because it has the highest Sharpe measure.

27、The Treynor and Sharpe ratios will:

A) give identical rankings when the assets have identical standard deviations.

B) give identical rankings when the same minimum acceptable return is chosen for the calculations.

C) give identical rankings when the assets have identical correlations with the market.

D) always provide identical rankings.

The correct answer is C

The Treynor and Sharpe ratios will provide the same ranking for two assets that have identical correlations with the market. While Treynor uses beta to measure risk and Sharpe uses standard deviation, we can decompose the beta of a security into its correlation and standard deviation components such that equal correlations will yield identical calculations for the Sharpe and Treynor ratios.

28、Portfolios X and Y have had an equal average return over the most recent period. Compared to Portfolio Y, Portfolio X had higher total risk, but lower systematic risk. Given this information, which of the following statements is TRUE? Compared to Portfolio Y:

A) Portfolio X has a higher Sharpe ratio and a lower Treynor ratio.

B) Portfolio X has both a lower Sharpe ratio and a lower Treynor ratio.

C) Portfolio X has a lower Sharpe ratio and a higher Treynor ratio.

D) Portfolio X has both a higher Sharpe and a higher Treynor ratio.

The correct answer is C

The two portfolios will have the same numerator for both the Sharpe and the Treynor ratio. Thus, the denominator of the two measures will determine their relative sizes. The Sharpe measure has the standard deviation or total risk in the denominator, thus the value will be lower for X. Since X has lower systematic risk, its denominator in the Treynor measure will be lower and the overall measure will be higher for X.

AIM 5: Discuss extensions to Jensen’s alpha.

An analyst has gathered the following information about the performance of an equity fund and the S& 500 index over the same time period.   Using Jensen’s Alpha to measure the risk/return performance of the Equity fund and the S& 500, which of the following conclusions is TRUE?  The:

                                                         Equity Fund            S& 500

                   Return                                  23%                     27%           

                   Standard Deviation                15%                     19%

                   Beta                                   1.09                    1.00

                   Risk-free rate is 3.50%

A)  Equity fund underperformed the S& 500 by 6.12%.

B)  S& 500 outperformed the equity fund by 3.24%.

C)  S& 500 underperformed the equity fund by 2.67%.

D)  Equity fund outperformed the S& 500 by 5.04%.

The correct answer is A

Jensen’s Alpha: 0.23 – [0.035 + (0.27 – 0.035)1.09] = -0.0612 or -6.12%. The negative means it underperformed the S& 500.

AIM 6: Compute and interpret tracking error, the information ratio, and the Sortino ratio.

1、In the Sortino ratio, the excess return is divided by the:

A) standard deviation.

B) maximum drawdown.

C) standard deviation using only the returns below a minimum level

D) VAR.

The correct answer is C

The Sortino ratio examines the downside risk of returns. It is calculated as the portfolio return minus the minimum acceptable return (MAR) divided by a standard deviation that only uses returns below the MAR. It is similar to the target semivariance. The other responses refer to other measures of risk-adjusted performance. The Sharpe ratio divides the excess return above the risk-free rate by the standard deviation. An example of a risk-adjusted return on invested capital (RAROC) measure would be to divide the portfolio’s expected return by the VAR. The RoMAD (return over maximum drawdown) is the average portfolio return divided by the maximum drawdown. Drawdown refers to the percentage difference between the highest and lowest portfolio values during a period.

2、Jenny Rouse has been a portfolio manager for Theta Advisors for the last five years. The performance of her portfolio has had few returns below its benchmarks since its inception. Which of the following risk measures best measures Rouse’s performance?

A) Standard Deviation.

B) Range.

C) Sharpe ratio.

D) Sortino ratio. 

The correct answer is D

The Sortino ratio examines the downside risk of returns. It is calculated as the portfolio return minus the minimum acceptable return (MAR) divided by a standard deviation that only uses returns below the MAR. It is similar to the target semivariance. Since Rouse’s portfolio has had consistently higher returns, she should not be penalized for any variability on the upside. The range (the difference between the highest and lowest values), standard deviation, and Sharpe ratio (which uses the standard deviation in the denominator) examine all returns, whether they correspond to positive or negative alphas. The use of these measures would result in risk measurements that are unfairly high in Rouse’s case.

3、The Sortino ratio is most similar to the:

A) Treynor ratio.

B) information ratio.

C) relative tracking error ratio.

D) Sharpe ratio.

The correct answer is D

The Sortino ratio is similar to the Sharpe ratio except for two changes. We replace the risk-free rate with a minimum acceptable return, denoted Rmin, and we replace the standard deviation with a type of semivariance.

6、The Sortino ratio is a measure of a portfolio’s return above:

A) zero divided by the standard deviation.

B) the market return divided by beta.

C) a minimal acceptable return divided by downside deviation.

D) the market return divided by the standard deviation.

The correct answer is C

The definition of the Sortino ratio is a predefined minimal acceptable return divided by downside deviation.

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