Multiple Choice
What will happen to the security market line (SML) if the following events occur, other things constant: (1) inflation expectations increase, and (2) investors become more risk averse?
A) shift up and keep the same slope
B) shift up and have less slope
C) shift up and have a steeper slope
D) shift down and keep the same slope
E) shift down and have less slope
Correct Answer:

Verified
Correct Answer:
Verified
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