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

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

Correct Answer:

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