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agasfer [191]
3 years ago
7

The SML helps determine the risk-aversion level among investors. The higher the level of risk aversion, the ____________ the slo

pe of the SML. Which of the following statements best describes the shape of the SML if investors were not at all risk averse?
a. The SML would have a positive slope, but the slope would be flatter than it would be if investors were risk.
b. The SML would be a horizontal line.
c. The SML would have a positive slope, but the slope would be steeper than it would be if investors were risk averse.
d. The SML would have a negative slope.
Business
1 answer:
Lisa [10]3 years ago
8 0

Answer:

a. The SML would have a positive slope, but the slope would be flatter than it would be if investors were at risk.

Explanation:

<em> </em><em>The SML would have a positive slope, but the slope would be flatter than it would be if investors were risked The SML would be a horizontal line O The SML would have a positive slope, but the slope would be steeper than it would be if investors were risk-averse O The SML would have a negative slope.</em>

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