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Discuss what is the security market line and how it is affected by the change in...

Discuss what is the security market line and how it is affected by the change in risk-free rate and investor risk aversion?
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A security market line is a graphical representation of capital asset pricing model where on one axis lies the Systematic risk and on another axis lies the expected return. When the risk free rate changes it directly affects the expected return of the investor. Investor risk aversion is connected with the systematic risk. thus in any of the 2 things goes up or down the security market lines is moved accordingly.

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