The Slope of the SML Is Determined by Investors' Aversion

question 126

True/False

The slope of the SML is determined by investors' aversion to risk.The greater the average investor's risk aversion, the steeper the SML.

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Definitions:

Terror Management Theory

A social psychological concept positing that much of human behavior is motivated by an underlying fear of mortality.

Nurturing

Providing care and encouragement for the growth or development of someone or something.

Acts Of Violence

Behaviors that involve physical force intended to hurt, damage, or kill someone or something.

Intergroup Conflict

A situation in which groups with perceived incompatible goals or interests are in opposition, leading to conflict.