58.
For a given common stock, an increase in the business risk of the issuing company would most likely result in which of the following changes with respect to the security market line (SML)?
Select exactly 1 answers from the following:
A. An upward shift in the SML.
B. A downward shift in the SML.
C. Movement upward along the SML.
D. Movement downward along the SML.
答案和详解如下！
Feedback: Correct answer: C
Investment Analysis and Portfolio Management, 7th edition, Frank K. Reilly and Keith C. Brown (South-Western, 2003), pp. 23?7 2006 Modular Level I, Vol. IV, pp. 710-714 Study Session 18-76-d define the security market line, and discuss the factors that cause movements along, changes in the slope of, and shifts of the security market line.
Any change in an asset that affects its fundamental risk factors will cause the asset to move along the security market line (SML); an increase in risk would result in an upward movement along the SML.
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发表于 2006-11-21 12:31
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