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Security market line

Other things held constant, if the expected inflation rate decreases and investors also become more risk averse, the Security Market Line would shift in this manner:

A. Down and have a steeper slope.
B. Up and have a less steep slope.
C. Up and keep the same slope.
D. Down and keep the same slope.
E. Down and have a less steep slope.

Solution Summary

The solution explains the correct alternative in respect of security market line

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