suppose an FI holds a $2 000 000 trading portfolio with an average beta of 1.0. Over the last year, the daily return on the stock market index was 3 %. How much does the FI stand to lose in earning if adverse stock market return materialize tomorrow?

A. 2000000 x 0.03 = 60000

B. 2000000 x 1.0 x 0.03 = 60000

C. 2000000 x 1.65 x 0.03 = 99000

D. 2000000 x 2.33 x 0.03 = 139800