Multiple Choice
The security market line (SML) relates risk to return, for a given set of market conditions. If expected inflation increases, which of the following would most likely occur?
A) The market risk premium would increase.
B) Beta would increase.
C) The slope of the SML would increase.
D) The SML line would shift up.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: The standard deviation of a portfolio is
Q2: You are considering investing in a portfolio
Q5: The expected return on ZV next year
Q6: The market risk premium is<br>A) 2%.<br>B) 4%.<br>C)
Q7: The capital asset pricing model<br>A) provides a
Q8: What is the expected dollar return on
Q9: The portfolio standard deviation will always be
Q10: The return for the market during the
Q11: If an investor must choose between investing
Q110: Unsystematic risk can be eliminated through diversification.