What will happen to the Security Market Line if (1) inflation expectations increase and (2) investors become more risk averse?
Answers
Answered by
9
Answer:
Financial risk. 13. What will happen to the security market line (SML) if the following events occur, other things constant: (1) inflation expectations increase, and (2) investors become more risk averse? ... The relative ease or tightness in capital markets and the expected rate of inflation.
Similar questions