Which of the Following Is Correct Regarding the SML

question 50

Multiple Choice

Which of the following is correct regarding the SML?

• A)The greater the marginal investor's risk aversion, the steeper the SML.
• B)The greater the marginal investor's risk aversion, the flatter the SML.
• C)The greater the marginal investor's risk aversion, the more negative the SML slope.
• D)The lower the marginal investor's risk aversion, the steeper the SML.

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