An Increase in Investors' Aversion to Risk Causes the SML

question 113

True/False

An increase in investors' aversion to risk causes the SML to shift up parallel to the old SML.

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Definitions:

Motivator-Hygiene Theory

A theory that suggests job satisfaction and dissatisfaction arise from different sets of factors: motivators lead to satisfaction, while the absence of hygiene factors leads to dissatisfaction.

Employee Motivation

The combined internal and external factors that influence an employee's enthusiasm and willingness to invest effort in achieving organizational objectives.

Job Specialization

The process of focusing on and becoming expert in a particular task or area of work within an organization.

Work Efficiency

The effectiveness with which job responsibilities and tasks are completed using the least amount of resources or time.