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goblinko [34]
3 years ago
14

If all investors become more less risk-averse, the SML will _______________ and stock required returns will ________.

Business
1 answer:
zmey [24]3 years ago
6 0

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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Explanation:

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3 years ago
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2 years ago
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3 years ago
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