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  • 15-12-2022
  • Business
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Which one of the following will increase the slope of the security market line? Assume all else constant.
A. increasing the beta of an efficiently-priced portfolio
B. increasing the risk-free rate
C. increasing the market risk premium
D. decreasing the market rate of return
E. replacing a low-beta stock with a high-beta stock within a portfolio
See Section 12.5

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