A Reduction in the Willingness of Investors to Take on Risk

question 60

Multiple Choice

A reduction in the willingness of investors to take on risk would have what effect on the Security Market Line (CAPM) ?

• A) No effect
• B) Rotate the SML counter clockwise around the risk-free rate
• C) Rotate the SML clockwise around the risk-free rate
• D) Shift the SML upward,parallel to its previous location

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Definitions:

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Skills and abilities that enable an individual to independently manage their personal and professional development.

HR Practices

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