The slope of the SML is determined by the:
A)beta of the market.
B)market risk premium.
C)risk-free rate.
D)the required return.

Name: The slope of the SML is determined by the: A)beta of the market. B)market risk premium. C)risk-free rate. D)the required return.
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Question

Quizplus · Accepted Answer

The market risk premium determines the slope of the SML. The beta of the market, risk-free rate, and required return all influence the position of the SML, but not its slope.

The Slope of the SML Is Determined by The