Question

The systematic response coefficient for productivity, βp, would produce an unexpected change in any security return...

The systematic response coefficient for productivity, βp, would produce an unexpected change in any security return of [βP× ___] if the expected rate of productivity was 1.8 percent and the actual rate was 2.2 percent.

.4%

-.4%

2.2%

--2.2%

1.8%

0 0
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Answer #1

Answer: Correct option is 0.4%

Given that the expected rate of productivity=1.8%, actual rate=2.2%

Ri =βPFP = βP(2.2 - 1.8) =0.4βP
The systematic response coefficient for productivity, βp, would produce an unexpected change in any security return of 0.4βP

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