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AAFM CWM_LEVEL_2 Exam - 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 (%).

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Suggested Answer: C

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

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Dianne
3 months ago
Not sure about these numbers, they seem off.
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Hillary
4 months ago
Definitely going with D, seems solid!
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Javier
4 months ago
Wait, how do we even calculate that?
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Levi
4 months ago
I think option B looks right.
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Willis
4 months ago
Jensen measure is all about risk-adjusted returns!
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Nathan
5 months ago
I feel like I might be mixing up the Jensen measure with the Sharpe ratio. I need to double-check my notes on that!
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Elliott
5 months ago
This question seems similar to one we did in class, but I can't recall the exact numbers we used. I hope I remember the steps correctly.
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Leigha
5 months ago
I think the Jensen measure is based on the excess return over the risk-free rate, but I’m confused about how to apply it to each fund.
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Fletcher
5 months ago
I remember we practiced calculating the Jensen measure, but I’m not sure if I got the formula right.
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Lavera
5 months ago
Ugh, I hate these finance questions. Calculating the Jensen measure seems tricky, but I'll give it my best shot. Gotta stay focused and work through it step-by-step.
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Geraldine
5 months ago
No problem, I've got this. The Jensen measure is just (fund return - risk-free rate) / (market return - risk-free rate). Plugging in the numbers should be easy.
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Truman
5 months ago
Hmm, I'm a bit unsure about this one. I know the Jensen measure is related to alpha, but I'm not totally confident in the exact formula. I'll have to review my notes to make sure I do this right.
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Daren
5 months ago
Okay, this looks like a straightforward Jensen measure calculation. I'll need to use the formula and plug in the given returns and market return.
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Kerry
5 months ago
Hmm, I'm not entirely sure about this one. I'll need to think it through and make sure I understand the different file formats before selecting my answers.
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Miriam
5 months ago
Hmm, this seems like a tricky one. I'll need to think carefully about the different specification-based techniques and how they could be applied to enhance coverage for this code fragment.
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Rozella
5 months ago
I'm a bit unsure about corporate stocks. I think they can be traded both on an exchange and OTC, but I'll have to review that.
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Heike
5 months ago
Hmm, I'm a bit confused on the difference between these two concepts. I'll need to review my notes to make sure I understand.
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Ernie
10 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
10 months ago
I wish they would make these questions a bit more straightforward.
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Santos
10 months ago
I think I'm just going to guess and hope for the best.
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Julio
10 months ago
I know right, these questions can be so tricky sometimes.
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Whitney
11 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
9 months ago
I'll go with D) 3.17, 4.58, 5.78
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Sunny
9 months ago
I'm not sure, maybe C) 4.35, 3.78, 2.53
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Tracey
9 months ago
I'm going with B) 2.25, 3.78, 4.65
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Zack
10 months ago
I think the answer is A) 1.70, 5.30, 3.40
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Lang
11 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
11 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
10 months ago
User 2
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Elina
10 months ago
User 1
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Adelina
11 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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Felix
11 months ago
So, for the first mutual fund, the Jensen measure would be 1.70?
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Brandon
11 months ago
Yes, that's correct. It measures the excess return of a portfolio over the risk-free rate.
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Felix
11 months ago
I think the Jensen measure is calculated by subtracting the risk-free rate from the actual return.
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