Multiple Choice
What will happen to the Security Market Line if (1) inflation expectations increase and (2) investors become more risk averse?
A) It will shift up and have a steeper slope.
B) It will shift down and have the same slope.
C) It will shift down and have a steeper slope.
D) It will shift up but have less slope.
Correct Answer:
Verified
Correct Answer:
Verified
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