The Security Market Line (SML)relates Risk to Return,for a Given

question 49

Multiple Choice

The Security Market Line (SML) relates risk to return,for a given set of financial market conditions.If investors conclude that the inflation rate is going to increase,which of the following changes would be most likely to occur?

• A) The market risk premium would increase.
• B) Beta would increase.
• C) The slope of the SML would increase.
• D) The required return on an average stock,r_A = r_M,would increase.
• E) None of the indicated changes would be likely to occur.

Recognize the importance of parallel structure and emphasis order in job descriptions and responsibilities.

Distinguish between solicited and prospecting job application letters and their respective strategies.

Understand how to use electronic platforms for job hunting, including email and social media profiles.

Recognize the role of you-attitude in crafting job application materials and how it affects the perception of the applicant.