Assume a security has a GNP beta of 1.3. Accordingly, the security's total rate of return will:

Multiple Choice

increase by 1.3 percent for every 1 percent decrease in GNP.

increase by 1.3 percent every time the GNP increases by 1.3 percent.

change by 1.3 times the percentage amount of any unexpected change in GNP.

change by the unexpected percentage change in GNP divided by 1.3.

increase by 1.3 percent whenever the GNP increases by 1.3 percent.