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AAFM CWM_LEVEL_2 Exam - Topic 5 Question 29 Discussion

Section C (4 Mark)Read the senario and answer to the question.If Mahesh has the option of 3 funds whose details are as below, find Jensen's index for fund A, Treynor index for fund B and Sharpe index for the market
A) 0.7%; 2.2; 0.1764
B) 0.5%; 2.2; 0.1764
C) 1%; 2.2; 0.5
D) 1%; 2.2; 0.8

AAFM CWM_LEVEL_2 Exam - Topic 5 Question 29 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 29
Topic #: 5
[All CWM_LEVEL_2 Questions]

Section C (4 Mark)

Read the senario and answer to the question.

If Mahesh has the option of 3 funds whose details are as below, find Jensen's index for fund A, Treynor index for fund B and Sharpe index for the market

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Suggested Answer: A

by Nobuko at May 05, 2022, 07:59 AM

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Curtis
8 months ago
Wait, why is Fund D's Sharpe index so high?
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Bok
8 months ago
Fund C seems to have the best Sharpe index.
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Frederic
8 months ago
Totally agree, A doesn't look great!
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Lillian
8 months ago
Fund A has the lowest Jensen's index.
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Mona
8 months ago
}
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Annamae
8 months ago
"Sharpe ratio for the market... I think we need the risk-free rate to compare it properly. I don't want to confuse it with the other ratios; they all sound a bit alike!"
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Tamala
9 months ago
{
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Irene
9 months ago
]
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Altha
9 months ago
I’m not convinced these numbers add up.
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Earleen
9 months ago
},
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Annamae
10 months ago
"I feel like I saw a similar exam question where Jensen's index was involved. I hope my calculations are accurate this time, though I can't remember the specific numbers."
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Dean
10 months ago
{
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Jettie
10 months ago
},
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Annamae
10 months ago
"For Treynor, I recall that it requires beta. Fund B shows a beta of 2.2, which is pretty high, but I’m not sure if that affects the index a lot."
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Laila
10 months ago
{
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Lucia
10 months ago
},
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Annamae
11 months ago
"I think Jensen's index might be the easiest to start with. I remember practicing that with different funds, but I'm a bit unsure about the exact formula."
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Gilbert
11 months ago
{
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Alise
11 months ago
[
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Francene
11 months ago
{
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Alishia
11 months ago
Okay, I've got this. The Development Team should meet with Sally to get a clear understanding of the user story and what's expected. That way, they can work together to determine the best path forward.
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Micah
11 months ago
Hmm, this is a tricky one. I know Azure HDInsight supports Spark, but I'm not familiar with the other services mentioned. I'll have to think this through carefully.
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Altha
11 months ago
Ah, I remember learning about this in class. FAT32 has a maximum drive size of 4 terabytes, so the answer is D.
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Wynell
11 months ago
Hmm, I'm a bit unsure about this one. The options seem pretty similar, and I'm not totally familiar with the specific healthcare industry terminology being used. I'll have to think this through carefully.
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Misty
12 months ago
Hmm, I'm a little unsure about this one. I'll have to think it through carefully before answering.
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