If a security has a GNP beta of 1.5, then the security’s total rate of return will:
A....
If a security has a GNP beta of 1.5, then the security’s total rate of return will:
A. change by an amount equal to the unexpected percentage change in GNP divided by a factor of 1.5.
B. change by an amount equal to 1.5 times the percentage amount of any unexpected change in GNP.
C. increase by 1.5 percent for every 1 percent decrease in GNP.
D. increase by 1.5 percent whenever the GNP increases by 1.5 percent.
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