asked 206k views
4 votes
The steeper the slope of the security market line the the greater the degree of risk aversion.

a. True
b. False

asked
User IAj
by
7.8k points

1 Answer

5 votes

Answer:

true

Step-by-step explanation:

the security market line is a graph that shows the relationship between the expected rate of return of a security and systemic risk.

The slope of the SML is the market risk premium. The steeper the slope, the greater the risk aversion.

answered
User Horacex
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7.9k points

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