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Suppose investors fear a recession and are becoming more risk averse. What is the most likely impact on the securities market line (SML)? The slope
Suppose investors fear a recession and are becoming more risk averse. What is the most likely impact on the securities market line (SML)?
The slope of the SML increases | ||
The slope of the SML decreases | ||
The SML shifts up | ||
The SML shifts down | ||
No impact on the SML |
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