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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Mozell

5 days ago

D has the highest returns. Might be worth considering!

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Mohammad

10 days ago

I’m leaning towards B. The returns feel balanced.

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Dominque

15 days ago

I think option A looks good. The numbers seem reasonable.

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Omega

20 days ago

This question is tricky! Jensen measure can be confusing.

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Aja

25 days ago

9.36 for option D? That seems way too high!

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Ahmad

1 month ago

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

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Geoffrey

3 months ago

Not sure about that, B seems more realistic.

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Dean

3 months ago

I think option A looks solid!

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Tatum

3 months ago

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

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Carmelina

3 months ago

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

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Nan

3 months ago

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

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Celestina

3 months ago

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

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Johnetta

4 months ago

I think option A looks right!

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Adria

4 months ago

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

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Oneida

4 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

4 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

4 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

4 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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