AAFM Exam CWM_LEVEL_2 Topic 2 Question 89 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 89
Topic #: 2

Section C (4 Mark)

Read the senario and answer to the question.

If Mahesh has the option of 3 funds whose details are as below, find Jensen's index for fund A, Treynor index for fund B and Sharpe index for the market

A0.7%; 2.2; 0.1764

B0.5%; 2.2; 0.1764

C1%; 2.2; 0.5

D1%; 2.2; 0.8

Show Suggested Answer

Suggested Answer: A

by Luisa at Sep 19, 2024, 12:34 PM

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Carlota

28 days ago

Ah, the old Jensen-Treynor-Sharpe conundrum. I bet the exam creators are having a field day watching us scratch our heads over this one. Time to channel my inner Wall Street wizard and nail this question!

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Mozelle

19 hours ago

I think I'll go with option A for Jensen's index.

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Jodi

9 days ago

I believe the Sharpe index for the market is option D.

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Vicky

20 days ago

I'm leaning towards option B for Treynor index.

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Noel

22 days ago

I think I'll go with option A for Jensen's index.

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Dino

1 months ago

Wait, wait, wait. The Sharpe index for the market is 0.8? That can't be right! Someone's got to be pulling our leg here. Or maybe I'm just terrible at this stuff.

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Kina

1 months ago

Hmm, I'm not sure about the Treynor index for fund B. Is it really 2.2? Seems a bit high to me, but what do I know? Finance ain't my strong suit, that's for sure.

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Malcolm

1 months ago

Hold up, I think the Sharpe index for the market is 0.5, not 0.1764. This exam is really testing our finance knowledge, huh? I better double-check my work on this one.

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Halina

8 days ago

That's correct. And for fund B, the Treynor index is 2.2.

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Margurite

10 days ago

So, for fund A, the Jensen's index is 0.7% right?

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Jani

16 days ago

Yeah, I remember that too. It's important to double-check our calculations on these finance questions.

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Hubert

19 days ago

Let's double-check our work to make sure we have the right numbers for Jensen's index, Treynor index, and the Sharpe index for the market.

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Mabel

20 days ago

I think you're right, the Sharpe index for the market might actually be 0.5. Let's make sure we have the correct values for all the funds.

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Clare

26 days ago

I think you're right, the Sharpe index for the market is actually 0.5.

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Jade

27 days ago

I agree, this question is definitely challenging. I'm going to review my calculations for the Sharpe index.

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Rolf

2 months ago

I'm not sure, but I think the answer might be option A because it has the highest Jensen's index for fund A.

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Melodie

2 months ago

I disagree, I believe the answer is option D because it has the highest Treynor index for fund B.

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Janine

2 months ago

I think the answer is option C because it has the highest Sharpe index for the market.

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Lonna

2 months ago

Well, this is a tricky one. I'm guessing the Jensen's index for fund A is 0.7%, the Treynor index for fund B is 2.2, and the Sharpe index for the market is 0.1764. Gotta love these finance calculations!

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Brandon

2 months ago

Oh really? Thanks for pointing that out. So, what do you think the correct Treynor index for fund B is?

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Elina

2 months ago

I think you got the Jensen's index for fund A wrong, it's actually 0.5%.

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