AAFM Exam CWM_LEVEL_2 Topic 5 Question 75 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 75
Topic #: 5

[All CWM_LEVEL_2 Questions]

Section C (4 Mark)

Consider the following information for three mutual funds:

Market Return 10%

Risk free return is 7%.

Calculate Jensen measure (%).

A1.70, 5.30, 3.40

B2.25, 3.78, 4.65

C4.35, 3.78, 2.53

D3.17, 4.58, 5.78

Show Suggested Answer

Suggested Answer: C

by Clorinda at Apr 20, 2024, 12:54 AM

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Ernie

2 months ago

Seriously, who comes up with these questions? It's like they're trying to trick us. I'm just going to write 'I have no idea' on the answer sheet and move on to the next one. At least I'll get partial credit for honesty.

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Ellsworth

29 days ago

I wish they would make these questions a bit more straightforward.

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Santos

1 months ago

I think I'm just going to guess and hope for the best.

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Julio

1 months ago

I know right, these questions can be so tricky sometimes.

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Whitney

2 months ago

Ugh, this question is giving me a headache. I'm just going to close my eyes and randomly select an answer. Maybe I'll get lucky and guess the right one. Eeny, meeny, miny, moe...

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Virgie

2 days ago

I'll go with D) 3.17, 4.58, 5.78

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Sunny

12 days ago

I'm not sure, maybe C) 4.35, 3.78, 2.53

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Tracey

13 days ago

I'm going with B) 2.25, 3.78, 4.65

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Zack

2 months ago

I think the answer is A) 1.70, 5.30, 3.40

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Lang

2 months ago

Wait, wait, wait. Something's not right here. I'm getting different numbers than option A. Let me double-check my work. Ah, got it! The correct answer is option B. Easy peasy!

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Lettie

2 months ago

Hmm, I think I got it. The Jensen measure for each fund is 1.70, 5.30, and 3.40. Looks like option A is the correct answer. This is a piece of cake!

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France

1 months ago

User 2

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Elina

1 months ago

User 1

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Adelina

2 months ago

Okay, let's see. I need to calculate the Jensen measure for each mutual fund. The formula is Jensen measure = (fund return - risk-free return) / (market return - risk-free return). Time to plug in the numbers!

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