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

  1. Other things held constant, in which way would the Security Market Line shift if the expected inflation ratedecreasesand investors also becomemorerisk averse?

a.It would shift up and have a less steep slope.

b.It would shift up and keep the same slope.

c.It would shift down and have a steeper slope.

d.It would shift down and keep the same slope.

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