You Are Given the Following Information About a Portfolio You

question 32

Multiple Choice

You are given the following information about a portfolio you are to manage.For the long term, you are bullish, but you think the market may fall over the next month. If the anticipated market value materializes, what will be your expected loss on the portfolio?

• A)7.58%
• B)6.52%
• C)15.43%
• D)8.57%

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Definitions:

Savings

The part of earnings not used for purchasing goods or services, typically saved for investing or future needs.

Disposable Income

Indicates the sum of funds households can allocate towards expenditure and savings once income taxes have been deducted.

Disposable Income

Households' available economic resources for spending and saving post-tax.

Disposable Income

The amount of money an individual or household has to spend or save after taxes have been deducted.