Exchange
<span>Exchange is simply the act of the of giving and receiving between two individuals or two groups. A trade is a typical example of an exchange.
For instance, if a farmer gives a fixed number of eggs to another farmer for a
fixed quantity of cow’s milk, this is an exchange. Similarly, if a house guest offers to cook and
clean in return for free accommodation, this is an exchange. </span>
Answer:
Option B, have the same intercept with a flatter slope; fall.
Explanation:
Option B is correct because a more risk-averse person faces a steeper curve while the less risk-averse person faces a flatter slope. While the more risk-averse person has more return on the stock while the less risk-averse person has less return. Therefore, in the given situation, the SML will have the flatter slope and its return will fall. As it is a less risk-averse investor.
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