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AAFM GLO_CWM_LVL_1 Exam - Topic 1 Question 114 Discussion

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 (%)?
C) 3.60, 2.40, 6.20
A) 3.45, 7.78, 4.38
B) 2.50, 8.50, 6.60
D) 3.65, 8.88, 9.36

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 (%)?

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Suggested Answer: C

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

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Geoffrey
1 month ago
Not sure about that, B seems more realistic.
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Dean
1 month ago
I think option A looks solid!
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Tatum
1 month ago
The market return is 10% and risk-free is 6%.
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Carmelina
2 months ago
I thought the risk-adjusted return would be higher than that!
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Nan
2 months ago
Wait, how do we even calculate Jensen's measure?
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Celestina
2 months ago
Not sure about that, A seems too low for those returns.
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Johnetta
2 months ago
I think option A looks right!
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Adria
2 months ago
The market return is 10% and risk-free is 6%.
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Oneida
2 months 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
3 months 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
3 months 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
3 months 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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