Unsure if this is a mistake or if I am missing something; top of page 246 in Volume 5…
Formula for Nmf is stated as [beta(m)-beta(target)/B(mf)]
Shouldn’t the bit in bold be the other way around? I’m guessing so since they flip the numbers in the next bit (i.e. [(1.20-0.0)/1.14]
Just wanted to double check!
Looks like a mistake. It most certainly should be (Beta Target) - (Beta Current). I’m surprised this isn’t in the errata.
Yeah, i’m 99% sure it should be that way around too. Doesn’t make sense otherwise, especially since the question is referring to increasing beta (i.e. buying futures). Flipping it would just make the contract number negative (and wrong)