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The Security Market Line plots the formula r = RE+ (OM PRF)B. If the market risk premium increases, then ... A. Investors will accept lower

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The Security Market Line plots the formula r = RE+ (OM PRF)B. If the market risk premium increases, then ... A. Investors will accept lower returns on stock investments B. The slope of the Security Market Line will flatten C. The required rate of return on a given stock increases D. Beta increases

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