Which of the following is the security market line SML equation o Rf B Rm Rf

Which of the following is the security market line

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Which of the following is the security market line (SML) equation? oRf+ B(RmRf)The x-intercept is equal to the __________. oBetaThe security market line (SML) graphs the market risk versus the __________. oreturn on the market as a wholeAn increase in risk aversion would tend to move the security market line (SML) as a __________.opivot at the y-axis, increasing the slopeA firm with a beta of 0.65 would produce an expected return of __________. Assume that the security market line (SML) is equal to 3% + B (8%).o8.20%
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What is the risk-free rate of the security market line (SML) below? Assume that the beta of the firm is 1.1.o5%If an asset falls on the security market line (SML), it is considered to be __________. (Assume that you have no other information.)oA fair investmentA firm with a beta of 1.2 would produce an expected return of __________. Assume thatthe security market line (SML) is equal to 5% + B (6%).o12.20%The slope of the line is equal to the __________.oMarket risk premiumIf an asset falls below the security market line (SML), it is considered to be __________. (Assume that you have no other information.)oA poor investmentThe security market line (SML) is mathematically similar to the __________. oCapital asset pricing model (CAPM)An increase in inflation would tend to move the security market line (SML) as a __________. oparallel shift up
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