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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 (%)?
Suggested Answer: C
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26 comments · newest first
AL
Alyce
2 months ago
D has the highest returns. Might be worth considering!
DE
Denise
2 months ago
I’m leaning towards B. The returns feel balanced.
WA
Wai
2 months ago
I think option A looks good. The numbers seem reasonable.
KE
Kerry
2 months ago
This question is tricky! Jensen's measure can be confusing.
DO
Dolores
2 months ago
I prefer B. The risk-adjusted returns seem reasonable.
SU
Susana
3 months ago
I’m leaning towards D. Those returns are impressive!
FE
Felix
3 months ago
I think option A looks good. The numbers seem balanced.
MI
Mitsue
3 months ago
This question is tricky! Jensen measure can be confusing.
MO
Mozell
3 months ago
D has the highest returns. Might be worth considering!
MO
Mohammad
3 months ago
I’m leaning towards B. The returns feel balanced.
DO
Dominque
4 months ago
I think option A looks good. The numbers seem reasonable.
OM
Omega
4 months ago
This question is tricky! Jensen measure can be confusing.
AJ
Aja
4 months ago
9.36 for option D? That seems way too high!
AH
Ahmad
4 months ago
Wait, how do we even calculate Jensen's measure?
GE
Geoffrey
6 months ago
Not sure about that, B seems more realistic.
DE
Dean
6 months ago
I think option A looks solid!
TA
Tatum
6 months ago
The market return is 10% and risk-free is 6%.
CA
Carmelina
6 months ago
I thought the risk-adjusted return would be higher than that!
NA
Nan
6 months ago
Wait, how do we even calculate Jensen's measure?
CE
Celestina
6 months ago
Not sure about that, A seems too low for those returns.
JO
Johnetta
7 months ago
I think option A looks right!
AD
Adria
7 months ago
The market return is 10% and risk-free is 6%.
ON
Oneida
7 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.
EL
Elli
7 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.
HA
Haydee
7 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.
BI
Billy
7 months ago
I remember we calculated Jensen's alpha in class, but I'm not sure how to apply it to these specific funds.