2009 CFA Institute Mock Exam Errata 3 June 2009 To be fair to all candidates, CFA Institute does not

respond directly to individual candidate inquiries. If you have a question concerning the CFA Institute mock exams, please contact CFA Institute (info@cfainstitute.org) to have potential errata investigated. Corrections below are in bold and new corrections will be shown in red. Any necessary corrections will be posted weekly. The short scale method of numeration is used in the CFA Program curriculum. A billion is 109 and a trillion is 1012. This is in contrast to the long scale method where a billion is 1 million squared and a trillion is 1 million cubed. The short scale method of numeration is the prevalent method internationally and in the finance industry. For your convenience, the full Global Investment Performance Standards, including the GIPS Glossary, can be found at: http://www.cfapubs.org/doi/pdf/10.2469/cb.v2005.n5.4002. Level I Mock Exam Morning Session: The second line of question 50 has been changed to A company reports earnings before taxes (instead of reports net income). The solutions are correct as given. Mock Exam Afternoon Session: The answer to question 93 has been changed from Answer C to Answer B.

Level II Mock Exam Morning Session: In the Jacques Nordique case scenario Equation 1 should read (P/E)t = b0 + b1 (P/E)t1 + t. A technical error previously prevented this from appearing correctly. Mock Exam Afternoon Session: The first line of question 30 has been changed to financed 50 percent by debt (instead of 40 percent). The solutions are correct as given. Mock Exam Morning Session: In exhibit 3 of the Maria Mendez case scenario under Active Risk Squared 85 has been replaced with 40. Mock Exam Afternoon Session: Question 19 Answer choice B has been changed to 469.5 from 404.5. Mock Exam Afternoon Session: (1,252) replaced (1,317) and 469.5 replaced 404.5 in the feedback section tables of Question 19. Mock Exam Morning Session: The following changes have been made to question 59: o Answer has been changed from Answer A to Answer B o In the Active Factor table in the feedback section: 2% has been changed to 5% in the column Under Industry 31% has been changed to 65% in the column Risk Indexes

 33% has been changed with 70% in the column Total Factor 14% has been changed to 30% in the column Active Specific 85 has been changed to 40 in the column Active Risk Squared o The last line of the feedback has been changed to state This table shows that portfolio T assumed higher active bets on the risk indexes and lower active specific risk.

Level III Mock Exam: The answer equations for question 23 should appear as follows: o Portfolio total active return = 2.67% = (0%0.45) + (6.5%0.15) + (5.7%0.2) + (2.75%0.2) o Portfolio total active risk = 1.6% =[(0%20.452) + (6.05%20.152) + (4.68%20.22) + (5.5%20.22)]1/2 Mock Exam: In the Durham case scenario the fifth paragraph beginning Groton has identified a U.S. Treasury was replaced with the following paragraph: o Groton has identified, as the CTD bond, a U.S. Treasury futures contract with a duration of 6.5 priced at $110,425. The conversion factor for the CTD bond is 0.9177 and the yield beta is 1.00. Groton tells the committee that the yield beta captures the relation between the CTD bond and the futures contract.