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Which of the following is correct? (a) A change in the inherent risk of an investment will cause a movement along the Security Market Line.
Which of the following is correct? (a) A change in the inherent risk of an investment will cause a movement along the Security Market Line. (b) A change in investors' attitudes toward risk will cause a change in the market risk premium, and cause a change in the slope of the Security Market Line. (c) A change in the inherent risk of an investment will cause the Security Market Line to shift. (d) A change in expected real growth, capital market conditions or expected rate of inflation will cause a parallel shift of the Security Market Line.
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