What Will Happen to the Security Market Line If (1)

question 22

Multiple Choice

What will happen to the Security Market Line if (1) inflation expectations increase and (2) investors become more risk averse?

• A) It will shift up and have a steeper slope.
• B) It will shift down and have the same slope.
• C) It will shift down and have a steeper slope.
• D) It will shift up but have less slope.

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Definitions:

Endangered

refers to species that are at serious risk of extinction in the wild in the near future if the factors threatening their survival and reproduction do not improve.

Household Pets

Domesticated animals kept for companionship or pleasure rather than for work or survival.

Extirpated

Refers to a species that has been removed or destroyed entirely from a specific geographic area, though it exists elsewhere.

Prey Species

Animal species that are hunted and consumed as food by predator species in an ecological community.