Errata takes this out of the curriculum. Therefore, I don’t think we need to worry 'bout it. Has this already been addressed?
what Controlling position?
Ah yes… using a controlling position to adjust back to the original dollar duration of a portfolio. Looks like we’re only responsible for knowing the rebalancing ratio and adding or subtracting from the market value of EACH position.
Sterling, are you referring to this? I don’t have my book with me. Damn I just learned it last night! Study Session 9, Reading 29: Delete the two paragraphs (“One possible method … may also consist of derivatives”) at the bottom of p. 31. Other possible methods of maintaining the original portfolio dollar duration include investing in a new bond or buying a futures contract to increase dollar duration.
Yup. This removes it from the curriculum, therefore it shouldn’t be tested (even though Schweser had it in their exams). Yeah, I have it down too. Now I need to wipe that part of my memory clean so I can put something I currently don’t understand in its place.
I don’t have to wipe stuff from my memory, it pretty much takes care of itself. I just give it a day or two after I have learned it…then viola…gone!
cfafrank Wrote: ------------------------------------------------------- > what Controlling position? The one I use on your mother.
passthismofo Wrote: ------------------------------------------------------- > I don’t have to wipe stuff from my memory, it > pretty much takes care of itself. I just give it > a day or two after I have learned it…then > viola…gone! I hear ya… this just happened to me with commodities. Black Swan Wrote: ------------------------------------------------------- > cfafrank Wrote: > -------------------------------------------------- > ----- > > what Controlling position? > > > The one I use on your mother. Bwaaahahhahahaaa! Classic.