What would not be true about gnp beta

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Reference no: EM132009848

1. What would not be true about a GNP beta?

a. If a stock's b GNP = 1.5, the stock will experience a 1.5% increase for every 1% surprise increase in GNP.

b. If a stock's b 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 the other answers.

2. A security that has a beta of zero will have an expected return of:

a. Zero.

b. The market risk premium.

c. The risk free rate.

d. Less than the risk free rate but not negative.

e. Less than the risk free rate which can be negative.

Reference no: EM132009848

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