IFSE Institute CIFC Exam - Topic 3 Question 18 Discussion

Actual exam question for IFSE Institute's CIFC exam

Question #: 18
Topic #: 3

Gregory is a conservative investor who wants to hold a portfolio of equity securities that would fall less than the overall market in a downturn.

Which of the following portfolios would you advise Gregory to invest in?

Aa portfolio with a beta equal to 1

Ba portfolio with a beta between 1 and 2

Ca portfolio with a beta greater than 2

Da portfolio with a beta less than 1

Show Suggested Answer

Suggested Answer: D

by Malinda at May 06, 2026, 05:36 PM

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10 days ago

I practiced a similar question, and I believe a portfolio with a beta less than 1 would help minimize losses during downturns.

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15 days ago

I'm not entirely sure, but I think a beta equal to 1 means it moves with the market, which doesn't seem conservative enough for him.

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21 days ago

I remember that beta measures volatility compared to the market, so I think a beta less than 1 would be safer for Gregory.

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