For a general quantal system, physical properties of the finite difference
between a pair of density operators are derived and a complete set of gener
ators for the associated 2-subspace is obtained. Each infinitesimal step in
any general ray-space evolution takes place in the local 2-subspace and ca
n be equated to a 'spin' rotation for the equivalent spin-1/2 particle. Hen
ce a completely general Hamiltonian implementing a given ray space evolutio
n comprises Pauli operators in the local 2-subspaces, constructed using the
given density operator and its differential. Dynamical phase identifies wi
th the phase in a rotating reference frame in which the 'spin' remains stat
ionary. The transformation from this rotating frame to the laboratory frame
effects a parallel transport evolution, producing geometric phase. A densi
ty operator equation is derived for geodesics. Geometric phase arises from
the parallel transport of the local 'spin' and equals minus half the integr
al of 2-subspace solid angles.