Implementation Shortfall Q10/Read41/Pg333 (vol5)

CFA Level III
#1

Problem B - why is the benchmark price = 53.25? could find it in the text in terms of how to determine benchmark price. isn’t benchmark price usually given??? if not given what’s the usual way to determine it? thanks

#2

i was about to ask about this problem. this is part B, ques 10 instead of implementation shortfall, they seem to have calculated effective spreads using midquotes. anyone?

#3

nobody had the same query?

#4

53.25 is the benchmark price. it is calculated as the midquote in this case.

#5

thanks bill, but where doesn’t it say in the text regarding how to get the benchmark price?

#6

unsolved puzzle…