You Are Given the Following Information About a Portfolio You

question 11

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. $$\begin{array} { l r r } \text { Portfolio Value } & \$ \quad 1 \text { million } \\\text { Portfolio's Beta } & 0.86 \\\text { Current S\&P500 Value } & 990 \\\text { Anticipated S\&P500 Value } & 915 \\\end{array}$$ What is the dollar value of your expected loss?

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

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Definitions:

Commercial Fisher

A person or business involved in the catching and selling of fish for commercial purposes.

Voidable

Describes a legal transaction or agreement that may be nullified or rescinded by one or more parties.

Released

The action of freeing someone or something from a constraint, obligation, or legal liability.

Obligations

Duties or commitments that an individual or entity is legally or morally bound to fulfill.