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.
Answers: 1
Another question on Business
Business, 22.06.2019 19:40
Anita has been named ceo of a popular sports apparel company. as ceo, she is tasked with setting the firm's corporate strategy. which of the following decisions is anita most likely to makea) whether to pursue a differentiation or cost leadership strategy b) which customer segments to target c) how to achieve the highest levels of customer satisfaction d) what range of products the firm should offer
Answers: 2
Business, 22.06.2019 20:30
Identify the level of the literature hierarchy for u.s. gaap to which each item belongs
Answers: 1
Business, 23.06.2019 04:31
Kubin company’s relevant range of production is 24,000 to 31,000 units. when it produces and sells 27,500 units, its average costs per unit are as follows:
Answers: 1
Business, 23.06.2019 08:30
Which of the following scenarios will probably cause prices to drop
Answers: 3
You know the right answer?
The SML helps determine the risk-aversion level among investors. The higher the level of risk aversi...
Questions
Biology, 12.08.2020 06:01
Social Studies, 12.08.2020 06:01
Computers and Technology, 12.08.2020 06:01
