thommo77

superstar123 Wrote:
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> not a good question...i think they are just trying
> to make a simple formula more difficult for people
> to miss it...just like the formula for currency
> contribution in international diversification...so
> simple,yet when asked in a problem set its the
> most likely to miss it

Yeah standard deviation must always be in the same currency. I can see that being on the PM exam.

The whole thing is this question is frankly just wrong. Using 6 as the duration has decreased portfolio duration below 4.



Edited 2 time(s). Last edit at Tuesday, May 17, 2011 at 10:32AM by Paraguay.