Answered

Looking for answers? Westonci.ca is your go-to Q&A platform, offering quick, trustworthy responses from a community of experts. Join our platform to connect with experts ready to provide detailed answers to your questions in various areas. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

The SML helps determine the risk-aversion level among investors. The higher the level of risk aversion, the ____________ the slope of the SML. Which of the following statements best describes the shape of the SML if investors were not at all risk averse?

a. The SML would have a positive slope, but the slope would be flatter than it would be if investors were risk.
b. The SML would be a horizontal line.
c. The SML would have a positive slope, but the slope would be steeper than it would be if investors were risk averse.
d. The SML would have a negative slope.

Sagot :

Answer:

a. The SML would have a positive slope, but the slope would be flatter than it would be if investors were at risk.

Explanation:

The SML would have a positive slope, but the slope would be flatter than it would be if investors were risked The SML would be a horizontal line O The SML would have a positive slope, but the slope would be steeper than it would be if investors were risk-averse O The SML would have a negative slope.

Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.