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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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