Multiple Choice
Which one of the following will increase the slope of the security market line? Assume all else constant.
A) increasing the beta of an efficiently-priced portfolio
B) increasing the risk-free rate
C) increasing the market risk premium
D) decreasing the market rate of return
E) replacing a low-beta stock with a high-beta stock within a portfolio
Correct Answer:
Verified
Correct Answer:
Verified
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