In a Bond Equi. Analysis question, Yield advantage Euro 5.5% - US 4.47%. This was divided by the US duration of 5.9 and not Euro-zone duration of 5.5, why was the yld adv. divided by 5.9 and not 5.5?
you take highest duration one
I got that one right, but I was shocked that they didnt need to adjust for the Beta… tisk tisk CFAI…
bigwilly Wrote: ------------------------------------------------------- > I got that one right, but I was shocked that they > didnt need to adjust for the Beta… tisk tisk > CFAI… you dont need to adjust for beta as they were looking at US bond in separation holding everything else constant
but they never said, ceterus paribus 