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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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Lonny
3 days ago
D is the best choice for a conservative investor.
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Herman
8 days 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
2 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
2 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
2 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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