AAFM GLO_CWM_LVL_1 Exam - Topic 8 Question 116 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 116
Topic #: 8

[All GLO_CWM_LVL_1 Questions]

If an investor's excess return is negative,

Athe realized return was less than the return earned by the market

Bthe required return exceeded the realized return

Cthe investor constructed a poorly diversified portfolio

Dthe investor's portfolio had excessive diversification

Show Suggested Answer

Suggested Answer: B

by Anjelica at Apr 12, 2026, 09:03 PM

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3 days ago

I think if the excess return is negative, it might mean the realized return was less than the market return, so A could be right.

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