So what’s the final verdict on this one? - Is the final correct ans A or C?
I have gove with C - Corporates
Bump on this.
Same question as 2014 mock a, set 7, question 3. Same issue too - duration mismatch on treasuries is greater than the spread duration mismatch on on Corporate bullets.
But as markCFAIL wrote, just use spread duration when it’s asking about tracking error.
Hey bud, was doing the same paper today and was confused myself - found this on another forum:
“I don’t know if this helps , but there is an errata from CFA about Mock 2011 , and I quote: Level III ? Mock Exam: Question 33 has been corrected to state: Based on the data in Exhibit 2, Mont’s positioning of the portfolio would suggest that the spread sector that poses the most tracking error relative to the benchmark is … and they highlight the word “spread” in red”
Which obviously makes it a lot clearer now!
Oh, so you mean they copied a question from 2011 but didn’t bother updating it to match the errata they published three years ago? Brilliant work CFAI. Just outstanding.
Yeah I know right. Also, if you’ve just done that paper, question set 8, Q5, re: agricultural commodities - general consensus is that that answer is wrong/totally ambiguous too … http://mail.analystforum.com/comment/91526831#comment-91526831
They are completely contradicting their own course material there!
Pretty worrying that they make these errors time and time again.
Wow, that’s rediculous. Thanks for point it out - I couldn’t remember enough about commodities to notice it.
No probs man, good luck for Saturday!
bump this, im sure other people will get confused by this answer