标题: Mistake in volume 4 [打印本页] 作者: metoyoushe 时间: 2011-7-11 18:33 标题: Mistake in volume 4
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作者: studyn 时间: 2011-7-11 18:33
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
