Question: The security market line (SML) indicates the relationship between expected return and systematic risk. Required: Indicate by using graphs how the security market line (SML)
The security market line (SML) indicates the relationship between expected return and systematic risk. Required: Indicate by using graphs how the security market line (SML) will change with each of the following by drawing the SML before and after the change. Label all axis. 1.1 Investors increase their risk premium. 1.2 Inflation expectations decrease. (2) 1.3 A security's risk level increase. (2) (2)
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