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.

---

Definitions:

Loans Granted

The act of giving money, property, or other material goods to another party in exchange for future repayment of the principal amount along with interest or other finance charges.

Adverse Selection

A situation where asymmetric information leads to the selection of poor-quality or unsuitable candidates or products, commonly seen in insurance and market transactions.

Secretary

A professional responsible for managing administrative tasks and facilitating smooth operations within an organization.

Trained

Refers to individuals who have received instruction or education in a specific skill or field.