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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) 3.2βGNP
B) .2βGNP
C) −.2βGNP
D) −3.2βGNP
E) 3βGNP

Correct Answer:

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