If Investors Became More Risk Averse the SML Would Shift

question 29

True/False

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

---

Definitions:

Current Period

Refers to the most recent operational or financial period under consideration or review in reports and statements.

Lending Risk

This term describes the potential for financial loss due to a borrower's failure to make required payments on a debt, affecting the lender's financial stability.

Financial Reporting

The act of creating disclosures that inform management, investors, and government bodies of a company's financial position.

Comprehensive Income

The total change in equity for a reporting period, including all revenues, gains, expenses, and losses.