You Are Given the Following Information About a Portfolio You

question 56

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. $$\begin{array} { | l | l | } \hline \text { Portfolio Value } & \$ 1 \text { million } \\\hline \text { Portfolio's Beta } & 0.60 \\\hline \text { Current S\&P500 Value } & 1400 \\\hline \text { Anticipated S\&P500 Value } & 1200 \\\hline\end{array}$$
-What is the dollar value of your expected loss?

• A)$142,900
• B)$16,670
• C)$85,700
• D)$30,000
• E)$64,200

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Definitions:

Rabbit/Duck

An example of a reversible figure that can be seen as either a rabbit or a duck, illustrating the concept of perceptual ambiguity.

Mental Scan

The cognitive process of mentally reviewing or searching through stored information or visual images in the mind.

Kosslyn

Refers to Stephen Kosslyn, a psychologist known for his work in the field of cognitive psychology, particularly in visual cognition and mental imagery.