A Decrease in Investors' Risk Aversion Causes the Slope of the SML

question 21

True/False

A decrease in investors' risk aversion causes the slope of the SML to decline becoming more horizontal.

---

Definitions:

Maslow's Hierarchy

A conceptual understanding of mental wellness that emphasizes the satisfaction of fundamental human necessities as a pathway to achieving self-actualization.

Rigid Order

A strict and unyielding system or arrangement of things, often leading to inflexibility and resistance to change.

Lower-Order Needs

In Maslow’s hierarchy are physiological, safety, and social.

Esteem

A feeling of respect and admiration for oneself or others, often related to one's achievements or qualities.