2012 Mock Q 37 & 38,

Why would one use cash duration 0.25 and the other use cash duration 0?

Is there a rule on what to use?


the other one is BETA

cash has no beta

OHHHH< I see

Thanks bud,

wait so when would you use the .25 cash duration? If you are adding exposure from funds that were real cash? ie not synthetic cash?

I believe it was given in the question as .25. If not stated assume zero for cash duration

If given, use cash in numerator if you are increasing or decreasing allocation to bonds.