What Would Not Be True About a GNP Beta

question 45

Multiple Choice

What would not be true about a GNP beta?

• A) If a stock's β GNP = 1.5, the stock will experience a 1.5% increase for every 1% surprise increase in GNP.
• B) If a stock's β GNP = -1.5, the stock 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 these.

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