The Security Market Line (SML) relates the risks of individual securities to their required rate of return. If investors conclude that the inflation rate is going to increase, which of the following change would occur?
A. The market risk premium will increase.
B. The beta of a stock will increase.
C. The slope of the SML will become steeper.
D. The standard deviation of a stock will increase.
E. The required returns on all stocks will increase.
Answer: E
You might also like to view...
Researchers found that negotiators who believed they were under surveillance
A. were more likely to make concessions that would facilitate mutual gain. B. obtained higher joint outcomes than negotiators not under surveillance. C. were more likely to use threats, commitment tactics and put downs of their opponents. D. were significantly more likely to conduct their negotiations in an integrative manner.
Dillon supervises the activities of both the benefits and training department managers and reports to one of the vice presidents; therefore, he is a ______.
a. HR supervisor b. HR middle manager c. HR first-line manager d. HR team manager
An alternative to settling an international dispute in a U.S. court is to use ____________.
Fill in the blank(s) with the appropriate word(s).
When considering the Project Management Maturity Model, progress from one level to the next is relatively quick with adequate planning.
Answer the following statement true (T) or false (F)