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:

Fgets()

Fgets() is a function in C that reads a line from a specified stream and stores it into the string pointed to, stopping when a newline character is found.

End Of File

A special marker or condition in file handling that indicates no more data is available for reading from a file.

'\0'

A null character used in C and some other programming languages to denote the end of a string.

Fgets()

A function in C programming used to read a string from an input stream.