You Are Given the Following Information About a Portfolio You

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. $$\begin{array} { | l | l | } \hline \text { Portfolio Value } & \$ 1 \text { million } \\\hline \text { Portfolio's Beta } & 0.60 \\\hline \text { Current S\&P500 Value } & 1400 \\\hline \text { Anticipated S\&P500 Value } & 1200 \\\hline\end{array}$$
-If the anticipated market value materializes,what will be your expected loss on the portfolio?

A) 14.29%
B) 16.67%
C) 15.43%
D) 8.57%
E) 6.42%

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free