If Investors Became More Risk Averse the SML Would Shift

question 99

True/False

If investors became more risk averse The SML would shift downward and the slope of the SML would fall.

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Definitions:

Exercise Price

The price at which an option holder can buy (call option) or sell (put option) the underlying security.

Time To Expiration

The duration remaining before an option or other derivative contract ceases to be valid and the holder must exercise their rights.

Stock Price

The cost at which a single share of a company's stock is bought or sold in the market.

Stock Volatility

A statistical measure of the dispersion of returns for a given security or market index, indicating how much and how quickly the value of a security or market index changes.