2009 Mock Q 45 vs Schweser V2 Exam 2 PM Q19.3

I know 2009 question 45 has been discussed and subtracting the .25 in cash equivalent duration when computing the number of contracts… however in Schweser Volume 2 Exam 2 PM question 19.3, it seems like the same exact problem… reallocating from bonds to equity, however they do not subtract the cash duration when computing the answer… I most likely have been schweserized on this since CFAI probably has it correct, but does anyone know why they do not subtract it in Schweser? granted if you subtracted it in Schweser that answer is not a choice, but still I don’t get why they do not.

bumping this up… i know at least a few of you had to have taken both exams… this seems like the same question, but they calc the answer different… any idea why?

I was wondering about this as well…I figured since we we’re only holding cash for a split second (shorting bond futures, and longing equity futures), we wouldn’t use the duration of cash.

if you do a search for last year’s mock, there is a bunch of discussion about using the .25 duration for cash. i think the consensus was just to use it if it is given to you, otherwise just assume it is 0.

I was just looking at this as well - I am convinced that we should use zero not 0.25

sorry for asking a stupid question in late innings. How did you guys get 2009 mock exam? Is it in website somewhere?

Hi Boston21 or anyone fellow CFAers: Could you guys send me the mock 2009 exam (question/answer). Greatly appreciate ghosh_atanu@yahoo.com I assume you guys got it from someone who took it last yr.

do a google search and you will find it