Question: 1) Changing the risk-free return (inflation): Changes neither the y-intercept nor the slope of the security market line Changes only the y-intercept of the security

1) Changing the risk-free return (inflation):

  1. Changes neither the y-intercept nor the slope of the security market line
  2. Changes only the y-intercept of the security market line
  3. Changes only the slope of the security market line
  4. Changes both the y-intercept and the slope of the security market line

2) Changing the market risk premium:

  1. Changes neither the y-intercept nor the slope of the security market line
  2. Changes only the y-intercept of the security market line
  3. Changes only the slope of the security market line
  4. Changes both the y-intercept and the slope of the security market line

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