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Really need some help on these two. 14. The security market line 15. a. Indicates which firms are earning positive profits. b. Relates the inflation
Really need some help on these two.
14. The security market line 15. a. Indicates which firms are earning positive profits. b. Relates the inflation rate to the real risk-free interest rate. c. Indicates a firm's required rate of return given the firm's beta coefficient. d. Determines returns on treasury bills and bonds. What happens to the security market line if the risk-free interest rate increases? a. It becomes kinked. b. It makes a parallel shift upward. c. It pivots upward from the y-axis intercept. d. It makes a parallel shift downward Step by Step Solution
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