I am confused by this question. How come they aren’t using the yield beta in their calculation of contracts needed to change the duration of the portfolio? I thought when adusting the duartion you need to multiply by the yield beta? Also - can someone help me understand the concept of yield beta - I’ve read about it a lot in Schweser but am a bit thrown off as to the real world application.
See the CFAI text - apparently if they ask for APPROXIMATE no. of contracts you ignore yield beta. If they ask for “Exact” no. then you got to use yield beta. yield beta definition I would just parrot the answer in the mock, measures sensitivity of return of the portfolio to the return of the CTD bond?