Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:19.
The slope of the SML is determined by the value of market risk premium.
a. True
b. False
The SML relates required returns to firms' systematic (or market) risk. The slope and
intercept of this line can be influenced by managerial actions.
20.
a. True
b. False
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