Problem
1. Consider the Security Market Line (SML). What determines its vertical intercept? What determines its slope? And what will happen to an asset's price if it initially plots onto a point above the SML?
2. Suppose that the Federal Reserve wants to increase stock prices. What should it do to interest rates?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.