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Part A. What would cause the security market line to make a parallel shift up or down? A. Changes in the collective level of investors'
Part A. What would cause the security market line to make a parallel shift up or down?
A. Changes in the collective level of investors' risk aversion
B. Changes in the risk-free rate
C. Changes in the expected market return
D. Changes in the beta of a stock
Part B. What would cause the slope of the security market line to change?
A. A decrease in the beta of stocks
B. An increase in the beta of stocks
C. A change in the collective level of investors' risk aversion
D. A change in the risk-free rate
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