mar350

I was not trying to challenge the CFA material, but just saying that I finally understood the point thanks to your previous post (think in terms of $ and not %). So I showed a proof of my mistake with an example.
By saying "The basis should be constant ! " I wanted to say "The basis should be constant if we want not basis risk"



Edited 1 time(s). Last edit at Sunday, May 1, 2011 at 11:28AM by bern.