What Will Happen to the Security Market Line (SML)if the Following

question 66

Multiple Choice

What will happen to the security market line (SML) if the following events occur,other things constant: (1) inflation expectations increase,and (2) investors become more risk averse?

• A) Shift up and keep the same slope
• B) Shift up and have less slope
• C) Shift up and have a steeper slope
• D) Shift down and keep the same slope
• E) Shift down and have less slope

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Definitions:

Authoritarian

A governing or parenting style characterized by strict discipline and an expectation of obedience without question.

"Because I Say So"

A style of authoritarian parenting where demands are made without explanation or justification to the child.

Uninvolved

A parenting style characterized by a lack of responsiveness to a child's needs, emotional detachment, and minimal communication.

Own Needs

The personal requirements or desires individuals prioritize and seek to fulfill to maintain their well-being and happiness.