SML relates required returns to firms' systematic (or market) riskThe slope and intercept of this line can be influenced by managerial actions.

Name: SML relates required returns to firms' systematic (or market) riskThe slope and intercept of this line can be influenced by managerial actions.
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Question

Quizplus · Accepted Answer

The slope and intercept of the Security Market Line (SML) are determined by market-wide factors, such as the risk-free rate and the market risk premium, not by individual managerial actions.

SML Relates Required Returns to Firms' Systematic (Or Market) RiskThe