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Author Question: Which of the following statements is correct? (Read 13 times)

Apple716

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on: Aug 7, 2023
Which of the following statements is correct?

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A graph of the SML as applied to individual stocks would show standard deviations of return on the vertical axis and betas of returns on the horizontal axis.


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The CAPM has been thoroughly tested, so there are no limitations when using it in practice.


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If investors become less risk averse, then (1) the slope of the SML would decrease and (2) the required rate of return on low-beta stocks would decrease by less than the required return on high-beta stocks. 


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An increase in expected inflation, combined with a constant real risk-free rate and a constant market risk premium, would lead to the increase in the required return on a riskless asset less than the increase on an average stock, other things held constant.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by Apple716 on Aug 7, 2023

viper01

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Apple716

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Reply 2 on: Aug 7, 2023
Wow, this really help

Dominic

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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