2009 mock question 51

In this calculation, why do they not multiply by the yield beta in the answer?

I dnt knw, they should multiply by yield beta to reduce basis risk and make the hedge more perfect.


Helpful response there bpdulog - keep up the good work. Sala.

Anyone have an answer to this??? This is annoying ! When i did the exam I multiplied by yield bata!

Where do you get the older Mock exams? Are they on CFA Website?

I cant be the only one who has had this questions ! Common people. No u cant get them on CFA website.

like…for reals

agree, this is an error. unless, based on his next statement, the “yield beta” he provides is not really a yield beta and so we are supposed to ignore it.

also could be because the way its stated they are saying yield beta on the CTD – what we’d need to use is a yield beta on the future.

Something tells me this has been asked…many times before.