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What will happen to the security market line (SML) if the following events occur, other things constant: (1) inflation expectations decrease, and (2) investors become
What will happen to the security market line (SML) if the following events occur, other things constant: (1) inflation expectations decrease, and (2) investors become less risk averse? a) Shift up and keep the same slope b) Shift up and have less slope Shift up and have a steeper slope Shift down and keep the same slope e) Shift down and have less slope
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