2011 Mock PM Q 33 tracking error corporate, question, relative

skycfa

The answer is C - corporate since it contributes the spread duration.
however, the question is asking “which sector that poses the most tracking error relative to the benchmark”, personally I think it is A - Treasury, since the dollar duration of Treasury with benchmark is the bigger than corporate.
what’s your view?

wizofoz

So what’s the final verdict on this one? - Is the final correct ans A or C?
I have gove with C - Corporates

Chuckrox8

Level3Once wrote:
This was errata. Search for 2011 mock scores and you will see we discussed it already. Correct answer is A as it is written. Correct answer is C with the errata change.
^^^^

dreampak

Agrred with rahuls.
Sector, duration contribution(PORTFOLIO), duration contribution(BMK)
————————————————————————————————
Treasury, 1.396, 1.140
MBS,         0.916, 0.916
Corp,        2.129, 2.355
—————————————————–
Total        4.44, 4.41
Basically, you can’t decide whether Treasury or Corp contribute more to duration mismatch. Spread duration does.
We don’t hve time to calc all this during the exam, though. As an intuitive thought, total duration is not provided on purpose and keep the question straightforward.

lunarfollies

This was errata. Search for 2011 mock scores and you will see we discussed it already. Correct answer is A as it is written. Correct answer is C with the errata change.

pogo

Where is this exam posted?

fishmarket

Where is this exam? is it on CFAI’s website?

Houjichasan

Where is this exam? is it on CFAI’s website?

pawn

@markCFAIL, haha, pronouncation leads my spelling.  
Yes, you are right, it’s CFAI’s problem.   Anyway, it’s their examination.

siavosh

where did you find the 2011 CFA Mock? is it posted on the CFA wbsite? thanks