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Vedmedyk [2.9K]
3 years ago
5

If all investors become more risk averse the SML will _______________ and stock prices will _______________. Multiple Choice hav

e the same intercept with a flatter slope; rise shift upward; rise have the same intercept with a steeper slope; fall shift downward; fall
Business
1 answer:
Eddi Din [679]3 years ago
7 0

Answer:

1. have the same intercept with a steeper slope;

2. fall

Explanation:

If all investors become more risk-averse, the SML will "have the same intercept with a steeper slope," and stock prices will "Fall."

The above statement is TRUE, and it is based on the theory that the slope of the Security Market Line reflects the level at which investors are unwilling to take the risk. Whereby the average investor prefers higher returns but is reluctant to take the risk.

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LO 7.2Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700
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Instructions are below.

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