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Assume that the Security Market Line (SML) is based on a risk free rate of 5% and a market rate of 11%. What will happen to the SML if the forecast of inflation increases and investors become more risk averse?
Marginal Utility
The extra fulfillment or advantage a person gains by consuming an additional unit of a product or service.
Satisfaction
The feeling of pleasure or fulfillment that comes from achieving a goal or satisfying a need.
Marginal Utility
The increase in satisfaction or utility derived from the consumption of an additional unit of a good or service.
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