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Problem:

Which one of the following will increase the slope of the security market line? Assume all else constant.

A. decreasing the market rate of return

B. replacing a low-beta stock with a high-beta stock within a portfolio

C. increasing the market risk premium

D. increasing the risk-free rate

E. increasing the beta of an efficiently-priced portfolio

Justify your answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146801

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