You Are Given the Following Information About a Portfolio You

question 29

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. $$\begin{array} { | l | l | } \hline \text { Portfolio Value } & \$ 1 \text { million } \\\hline \text { Portfolio's Beta } & 0.86 \\\hline \text { Current S\&P500 Value } & 990 \\\hline \text { Anticipated S\&P500 Value } & 915 \\\hline\end{array}$$
-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%
• E)6.42%