Errata for 2019 Exam 9 Products

Errata for Exam 9 Cookbook

Mango - Marginal Variance Method (2/4/19): In the discussion after the overall risk load calculation, the sentence should say “…but the sum of the renewal risk loads (1,836) is greater than the overall risk load.”

BKM 7 - Optimal Complete Portfolio (1/25/19): In the second paragraph of the discussion, it should state:

“Investors with higher degrees of risk aversion will allocate less to the optimal risky portfolio than investors with lower degrees of risk aversion.”

BKM 16 - Duration and Convexity - Semi-Annual (1/25/19): The convexity formula was incorrect. In the denominator, the (1 + y/k) term should be squared (like in the BKM text). I fixed the formula and calculations. Make sure to download the fixed recipe below (link below).

BKM 16 - Duration and Convexity - Semi-Annual (Fixed)