When the Security Market Line Shifts Up, the Average Expected

question 153

True/False

When the Security Market Line shifts up, the average expected rate of return on investment assets
with given risk levels is increasing.

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Definitions:

Encourage

To support, inspire, or motivate individuals or groups to take action or to continue with an activity.

Discourage

To dissuade or deter someone from doing something through persuasion or by creating doubts or fears.

Maintain

To keep something in an existing state or condition, preventing it from deteriorating or ensuring its continual effectiveness.

Avoid

To deliberately stay away from or prevent an event or situation from happening.