Question
Which of the following would cause a parallels shift in the Security Market Line for all betas exceeding 0? - market participants demand a higher
Which of the following would cause a parallels shift in the Security Market Line for all betas exceeding 0? - market participants demand a higher premium for market risk - the risk free rate of interest falls dramatically by 2% while the required market return stays the same - the risk free rate of interest falls dramatically by 2% while the required market return falls by 2% - the risk free rate of interest falls dramatically by 2% while the required market return rises by 2% - Market participants demand a lower premium for market risk - All of the above are correct - None of the above are correct
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