Which One of the Following Will Increase the Slope of the Security

question 53

Multiple Choice

Which one of the following will increase the slope of the security market line? Assume all else constant.

• A)increasing the beta of an efficiently-priced portfolio
• B)increasing the risk-free rate
• C)increasing the market risk premium
• D)decreasing the market rate of return
• E)replacing a low-beta stock with a high-beta stock within a portfolio

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Definitions:

Neurophysiology

The study of the function and activities of the nervous system and its components.

Synapses

The junctions between neurons through which they communicate with each other, using chemical or electrical signals.

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, etc.

Deep Meditation

A profound state of peace and mental clarity achieved through advanced meditation practices, often characterized by altered consciousness.