You Are Given the Following Information About a Portfolio You

question 6

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. $\begin{array}{lc} \text { Portfolio Value} &\$ \quad \text { 1million } \\ \text { Portfolio's Beta} &0.86\\ \text { Current S\&P500 value } &990\\ \text {Anticipated S\&P500 Value } &915\\\end{array}$


What is the dollar value of your expected loss?

• A) $142,900
• B) $65,152
• C) $85,700
• D) $30,000
• E) $64,200

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Definitions:

Fixed-ratio

A schedule of reinforcement where a response is only rewarded after a specified number of responses, leading to high and steady response rates.

Variable-ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, making it highly effective in maintaining behavior.

Fixed-interval

A term in operant conditioning referring to a schedule of reinforcement where a response is rewarded only after a specified amount of time has passed.

Variable-interval

A pattern of reinforcement in which a reward is given after a time period that cannot be predicted has passed.