Sample 2 question # 28

increasing alloc to bonds why use duration of .25 instead of zero for the Dur of the port? got it right even though i used zero because it was the only close answer but if they had both choices would have gotten it wrong

Duration of cash was .25 It was on the grid.

so if given always use it? most times when buying futures to increase an allocation the tgt is zero (beta or duration)

synthetic cash does have a duration, so if they give it, then I would use it. If they dont, then don’t assume that it has a duration… I personally disagree with a .25 duration. A .20 duration for synthetic cash seems much more appropriate…