If a Security Has a GNP Beta of 1

Multiple Choice

If a security has a GNP beta of 1.5,then the security's total rate of return will:

A) increase by 1.5 percent for every 1 percent decrease in GNP.
B) increase by 1.5 percent every time the GNP increases by 1.5 percent.
C) change by an amount equal to 1.5 times the percentage amount of any unexpected change in GNP.
D) change by an amount equal to the unexpected percentage change in GNP divided by a factor of 1.5.
E) increase by 1.5 percent whenever the GNP increases by 1.5 percent.