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IFSE Institute CIFC Exam - Topic 3 Question 18 Discussion

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?
D) a portfolio with a beta less than 1
A) a portfolio with a beta equal to 1
B) a portfolio with a beta between 1 and 2
C) a portfolio with a beta greater than 2

IFSE Institute CIFC Exam - Topic 3 Question 18 Discussion

Actual exam question for IFSE Institute's CIFC exam
Question #: 18
Topic #: 3
[All CIFC Questions]

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?

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Suggested Answer: D

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

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Sueann
2 days ago
I’d avoid A and B. Too much risk for Gregory.
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Blossom
8 days ago
Definitely D. Protects against market drops.
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Gussie
13 days ago
A beta less than 1 is perfect for downturns.
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Erasmo
18 days ago
Agreed, D is safer. Lower beta means less volatility.
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Youlanda
23 days ago
I think D is the best choice. Less risk.
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Luisa
28 days ago
I think A could work too, but D feels safer.
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Rosendo
1 month ago
Definitely D, can't afford to lose too much!
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Johnna
1 month ago
Wait, isn't a beta of 1 still risky in a downturn?
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Alex
1 month ago
Totally agree, lower beta means less risk!
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Lonny
2 months ago
D is the best choice for a conservative investor.
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Herman
2 months ago
I feel like I might be mixing things up, but isn't a beta greater than 2 really risky? I think Gregory should avoid that.
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Elden
3 months 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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Elenora
4 months 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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Fabiola
4 months 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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