What to know
Identify the rule, formula, or decision criterion before reading the answer choices. CFA Level I distractors often use the right vocabulary with the wrong condition.
Portfolio Management
Performance Measures practice questions
Performance Measures is part of CFA Level I Portfolio Management. Portfolio Management questions connect risk and return, asset allocation, CAPM, IPS constraints, behavioral biases, performance, and risk management. Use this page to review the controlling ideas, then work through 2 questions with answer explanations and common traps.
Review the worked explanations before moving into adaptive practice. The app version can mix this topic with due reviews and weak related concepts.
Practice this topicHow to practice
Work each item under time pressure, then compare your reasoning with the step-by-step explanation and key takeaway.
Review signal
Missed questions should become scheduled reviews when the error comes from a concept gap, formula setup, or answer-choice trap.
Portfolio Management
Performance Measures
A portfolio returned 11.2%; the risk-free rate was 3.2%; the market returned 9.5%. The portfolio standard deviation was 18%, market standard deviation 15%, and portfolio beta 0.90. Jensen's alpha is closest to:
View samplePortfolio Management
Performance Measures
Two portfolios have identical excess returns. Portfolio X has higher standard deviation but the same beta as Portfolio Y. Relative to Y, X must have:
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