What Would NOT Be True About a GNP Beta

question 5

Multiple Choice

What would NOT be true about a GNP beta?

• A)If a equity's GNP beta = 1.5, the equity will experience a 1.5% increase for every 1% surprise
• Increase in GNP.
• B)If a equity's GNP beta = -1.5, the equity will experience a 1.5% decrease for every 1%
• Surprise increase in GNP.
• C)It is a measure of risk.
• D)It measures the impact of systematic risk associated with GNP.
• E)None of the above.

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Definitions:

Marginal Utility

The added gratification or usefulness experienced by a buyer when they consume an additional unit of a good or service.

Utility Maximization

The economic principle that individuals or firms strive to get the greatest satisfaction or benefit from their available resources.

Marginal Utility

The enhanced gratification or value a customer derives from consuming another unit of a good or service.

Utility Equilibrium

A state in consumer theory where a consumer efficiently allocates their income to maximize their total utility.