Dear all, I have found the following mistake in volume 4 and emailed CFA about it - I was told that I was right and it will be included in the Curriculum Errata but it hasn’t been done yet and it has been a while. Thus, I would like to share it with you for your benefit: "Reading 51: On page 272, there is a discussion at the end of the page regarding the positively perfect correlation between risk-free asset and risky portfolio. I think there is a mistake in the discussion because the correlation between any asset and risk-free asset is zero. The reason why the capital market line is straight line doesn’t imply that the correlation between them is +1, it happens because the variance of risk-free asset is zero as well as the correlation between risk-free asset and other types of assets. There is a contradiction in your discussion on page 270 (where you mention that covariance for risk-free and risky asset is always zero) and on page 272 (where you move to mention that a correlation of +1 exists). " Hope this helps 
Omar
You’ll soon find LOADS of errors. When I studied for L2, every couple months I check the errata, it just kept getting longer and longer… It’s really disappointing. And some of the errors were in the End of Chapter answer solutions. That was the most devastating. Because you try a problem, then look at the solution. Then you have faith the solution is right and learn the solution (which is wrong) That was utterly horrible. I was not happy.
Yeah I guess that’s true - this is the first (and shortest) volume I study and I found 2 errors in it already … I hope it won’t get more when I start reading other volumes