All of the following are major sources of uncertainty EXCEPT

		Business risk
		Financial risk
		Default risk
		Country risk
		Liquidity risk

Which of the following is least likely to move a firm's position to the right on the Security Market Line (SML)?

1. an increase in the firm's beta

2. Adding more financial debt to the firm's balance sheet relative to equity

3. changing the business strategy to include new product lines with more volatile expected cash flows

4. investor perceived the stock as being more risky

Sources of risk for an investor include

		Variance of returns and business risk
		Coefficient of variation of returns and financial risk
		Business risk and financial risk
		Variance of returns and coefficient of variation of returns

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