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

question 4

Multiple Choice

The security market line (SML) relates risk to return, for a given set of market conditions. If expected inflation increases, which of the following would most likely occur?

• A) The market risk premium would increase.
• B) Beta would increase.
• C) The slope of the SML would increase.
• D) The SML line would shift up.

---

Definitions:

Potential Risks

Potential risks refer to the possible threats or negative outcomes that could affect a project, business, or endeavor if they materialize.

Aspect of Leadership

Aspect of leadership refers to the various dimensions or components that collectively define leadership, including styles, behaviors, responsibilities, and impact on followers.

Data Analytics

The process of examining data sets to draw conclusions about the information they contain, often with the aid of specialized systems and software.

Social Media Plans

Detailed strategies outlining how an organization or individual aims to engage with audiences and achieve specific goals using social media platforms.