- UID
- 223386
- 帖子
- 313
- 主题
- 69
- 注册时间
- 2011-7-11
- 最后登录
- 2016-4-19
|
Did CFA make an error with this solution?
Quant question #4 of pg. 412.
The solution to this question is..
TSE Spread = -0.45 + 0.05(ln900,000) - 0.06(1.3) + 0.29(-1.0) = 0.45
so the TSE spread declines by 0.45% for a 1 percent decline in NASDAQ spreads.
My question is regarding the ln900,000 figure. The question states that the book value asset equals $900 million. The figure inputted into the equation is 900,000. The reduction of 3 digits seems very arbitrary to me. Using ln900,000 obviously results in a completely different answer than using ln900,000,000. Am I missing something here? or is this just a mistake? |
|