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AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 125 Topic 13 Discussion

AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 125 Topic 13 Discussion

GLO_CWM_LVL_1 Exam Topic 13 Question 125 Discussion:
Question #: 125
Topic #: 13

Which of the following statement is true?


A.

The Jensen index compares actual performance to the risk-adjusted required performance.


B.

The Treynor index assumes that portfolios are not well diversified.


C.

The Sharpe index standardizes performance by the portfolio's beta.


D.

Option A and B


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