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Which of the following statements concerning the Security Market Line (SML) is CORRECT? a. The slope of the SML is the market risk premium b.

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Which of the following statements concerning the Security Market Line (SML) is CORRECT? a. The slope of the SML is the market risk premium b. The SML relates the required rate of return to the systematic risk level of securities. c. The SML will shift upward if the inflation rate and hence the risk free rate are expected to rise. All of the above. b and c only

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