related questions:

1. Suppose the expected return of the market decreases while the risk free rate stays the same. The Security Market Line will

A. parallel shift upward

B. have the same intercept with a flatter slope

C. have the same intercept with a steeper slope

D. parallel shift downward

2. Continued with the previous question. In this situation, what type of stocks will have a larger decline in the expected return?

A. The return decline between stocks will be the same.

B. low-beta stocks

c. high-beta stocks