If the Expected Rate of GNP Growth Was 3 Percent

question 5

Multiple Choice

If the expected rate of GNP growth was 3 percent and the actual rate was .2 percent higher than the expectation,the total return on a stock would change by ________ based on a multifactor model.

• A)3.2β_GNP
• B).2β_GNP
• C)−.2β_GNP
• D)−3.2β_GNP
• E)3β_GNP

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