Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

AAFM CWM_LEVEL_2 Exam - Topic 5 Question 75 Discussion

Section C (4 Mark)Consider the following information for three mutual funds:Market Return 10%Risk free return is 7%.Calculate Jensen measure (%).
C) 4.35, 3.78, 2.53
A) 1.70, 5.30, 3.40
B) 2.25, 3.78, 4.65
D) 3.17, 4.58, 5.78

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 (%).

Show Suggested Answer Hide Answer
Suggested Answer: C

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

Limited Time Offer

25%

Off

Get Premium CWM_LEVEL_2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Dianne
9 months ago
Not sure about these numbers, they seem off.
upvoted 0 times
...
Hillary
10 months ago
Definitely going with D, seems solid!
upvoted 0 times
...
Javier
10 months ago
Wait, how do we even calculate that?
upvoted 0 times
...
Levi
10 months ago
I think option B looks right.
upvoted 0 times
...
Willis
10 months ago
Jensen measure is all about risk-adjusted returns!
upvoted 0 times
...
Nathan
11 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!
upvoted 0 times
...
Elliott
11 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.
upvoted 0 times
...
Leigha
11 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.
upvoted 0 times
...
Fletcher
11 months ago
I remember we practiced calculating the Jensen measure, but I’m not sure if I got the formula right.
upvoted 0 times
...
Lavera
11 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.
upvoted 0 times
...
Geraldine
11 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.
upvoted 0 times
...
Truman
11 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.
upvoted 0 times
...
Daren
11 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.
upvoted 0 times
...
Kerry
11 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.
upvoted 0 times
...
Miriam
11 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.
upvoted 0 times
...
Rozella
11 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.
upvoted 0 times
...
Heike
11 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.
upvoted 0 times
...
Ernie
1 year 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.
upvoted 0 times
Ellsworth
1 year ago
I wish they would make these questions a bit more straightforward.
upvoted 0 times
...
Santos
1 year ago
I think I'm just going to guess and hope for the best.
upvoted 0 times
...
Julio
1 year ago
I know right, these questions can be so tricky sometimes.
upvoted 0 times
...
...
Whitney
1 year 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...
upvoted 0 times
Virgie
1 year ago
I'll go with D) 3.17, 4.58, 5.78
upvoted 0 times
...
Sunny
1 year ago
I'm not sure, maybe C) 4.35, 3.78, 2.53
upvoted 0 times
...
Tracey
1 year ago
I'm going with B) 2.25, 3.78, 4.65
upvoted 0 times
...
Zack
1 year ago
I think the answer is A) 1.70, 5.30, 3.40
upvoted 0 times
...
...
Lang
1 year 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!
upvoted 0 times
...
Lettie
1 year 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!
upvoted 0 times
France
1 year ago
User 2
upvoted 0 times
...
Elina
1 year ago
User 1
upvoted 0 times
...
...
Adelina
1 year 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!
upvoted 0 times
...
Felix
1 year ago
So, for the first mutual fund, the Jensen measure would be 1.70?
upvoted 0 times
...
Brandon
1 year ago
Yes, that's correct. It measures the excess return of a portfolio over the risk-free rate.
upvoted 0 times
...
Felix
1 year ago
I think the Jensen measure is calculated by subtracting the risk-free rate from the actual return.
upvoted 0 times
...

Save Cancel