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Exam CWM_LEVEL_2 All Questions
Exam CWM_LEVEL_2 All Questions

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AAFM Chartered Wealth Manager CWM_LEVEL_2 Question # 217 Topic 22 Discussion

CWM_LEVEL_2 Exam Topic 22 Question 217 Discussion:
Question #: 217
Topic #: 22

Section C (4 Mark)

The expected return for the market is 12 percent, with a standard deviation of 20 percent. The expected risk-free rate is 8 percent. Information is available for three mutual funds, all assumed to be efficient, as follows:

CWM_LEVEL_2 Question 217

Calculate the expected return on each of these portfolios respectively.


A.

11%,11.4% and 11.80%


B.

10.70%,11% and 11.25%


C.

9%,9.50% and 10.50%


D.

8.50%,10.50% and 10.80%


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