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When the market risk premium decreases whilst the risk free rate remains unchanged then the SML should: remain parallel to the original SML but shipped
When the market risk premium decreases whilst the risk free rate remains unchanged then the SML should: remain parallel to the original SML but shipped upwards. Remain parallel to the original SML but shipped downwards. Rotate downwards. Rotate upwards
When the market risk premium decreases whilst the risk free rate remains unchanged then the SML should: remain parallel to the original SML but shipped upwards. Remain parallel to the original SML but shipped downwards. Rotate downwards. Rotate upwards
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