Question: A decrease in the nominal risk - free rate will have the effect of decreasing the slope of the SML but leaving its Y -
A decrease in the nominal riskfree rate will have the effect of decreasing the slope of the SML but leaving its intercept unchanged decreasing both the Yintercept and the slope of the SML decreasing the Yintercept of the SML but leaving its slope unchanged increasing the Yintercept of the SML but leaving its slope unchanged increasing the slope of the SML but leaving its Yintercept unchanged
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