An investment analyst estimates the following regression between the return on a stock (R) and the return on S&P 500 index (RSP): R = 4% + 1.1 RSP + error term

Assuming error term is zero. Estimate the change in the return on the stock when the return on the S&P 500 index changes from 12% to 16%.

a). 2.5%

b). 4.4%

c). 4.8%

d). 5.5%

e). 6%