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

a) down and have a less steep 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 steeper slope.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M992494

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