AAFM GLO_CWM_LVL_1 Exam - Topic 1 Question 114 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 114
Topic #: 1

[All GLO_CWM_LVL_1 Questions]

Consider the following information for three mutual funds:

Market Return 10%

Risk free return is 6%.

Calculate the Risk Adjusted Return on the basis of Jensen measure (%)?

A3.45, 7.78, 4.38

B2.50, 8.50, 6.60

C3.60, 2.40, 6.20

D3.65, 8.88, 9.36

Show Suggested Answer

Suggested Answer: C

by Sheron at Mar 08, 2026, 03:23 PM

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Carmelina

23 hours ago

I thought the risk-adjusted return would be higher than that!

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Nan

6 days ago

Wait, how do we even calculate Jensen's measure?

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Celestina

11 days ago

Not sure about that, A seems too low for those returns.

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Johnetta

17 days ago

I think option A looks right!

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Adria

22 days ago

The market return is 10% and risk-free is 6%.

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Oneida

27 days ago

I think I might lean towards option A, but I really need to double-check my calculations for each fund's beta before I commit.

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Elli

1 month ago

I feel like I should be able to figure this out, but the numbers are throwing me off. I hope I remember how to adjust for the beta correctly.

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Haydee

1 month ago

This seems similar to a practice question we did last week. I think the formula involves the market return and the risk-free rate, but I can't recall the exact steps.

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Billy

1 month ago

I remember we calculated Jensen's alpha in class, but I'm not sure how to apply it to these specific funds.

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