The BoD has directed that investments should not be made towards unlisted assets and those in emerging markets due to the increased risk. To show if Emerging market equities add value to a portfolio, Terry conducts an analysis of the impact of adding varying proportions of emerging market equities in the BM portfolio. The following analysis shows the Expected returns, Abnormal returns, Tracking error (against the original BM composed of only developed market assets), and Volatility 1. To provide BoD with additional insight into the impact of including emerging market equities in the portfolio, you must choose only one ratio (of risk and return measures) to show the additional benefits and/or risks. Explain to the BoD what that ratio will show. 2. Given your choice of ratio, and what the ratio is intended to show, you will now explain to the BoD why emerging market equities should be included or should remain excluded. The chosen ratio must be used to demonstrate your point. The BoD has directed that investments should not be made towards unlisted assets and those in emerging markets due to the increased risk. To show if Emerging market equities add value to a portfolio, Terry conducts an analysis of the impact of adding varying proportions of emerging market equities in the BM portfolio. The following analysis shows the Expected returns, Abnormal returns, Tracking error (against the original BM composed of only developed market assets), and Volatility 1. To provide BoD with additional insight into the impact of including emerging market equities in the portfolio, you must choose only one ratio (of risk and return measures) to show the additional benefits and/or risks. Explain to the BoD what that ratio will show. 2. Given your choice of ratio, and what the ratio is intended to show, you will now explain to the BoD why emerging market equities should be included or should remain excluded. The chosen ratio must be used to demonstrate your point