An investment analyst estimates the following regression between the return on a stock (R) and the return on S&P 500 index (RSP):R = 5% + 1.2 RSP + error term

Assuming error term is zero (0), Estimate the change in the return on the stock when the return on the S&P 500 index changes from 11% to 14%.

A). 4.5%

B). 3.6%

C). 5.3%

D). 6.8%

E). 3.4%