Which of the followings is correct?
the slope of the sml is determined by the value of beta. the capital market line is all linear combinations of the risk-free asset and the market portfolio. we will almost always find that the beta of a diversified portfolio is less stable over time than the beta of a single security. in portfolio analysis, we often use ex ante (future) returns and standard deviations, despite the fact that we are interested in ex post (historical) data.

Advanced enterprises reports year-end information from 2018 as follows: sales (160,250 units) $968,000 cost of goods sold 641,000 gross margin 327,000 operating expenses 263,000 operating income $64,000 advanced is developing the 2019 budget. in 2019 the company would like to increase selling prices by 14.5%, and as a result expects a decrease in sales volume of 9%. all other operating expenses are expected to remain constant. assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. should advanced increase the selling price in 2019?