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:

Output Variables

In modeling and simulations, these are the responses or results that are generated as a consequence of changing input variables.

Uncertain Inputs

Variables or factors in a model or process whose values are not known with certainty and can vary.

Cumulative Profit

The total profit generated over a period of time, adding up individual profits from successive time periods.

Cumulative Net Profit

The total net profit of an entity over a period, accumulating all the net profits and losses from each period within the timeframe.