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Which of the Following Is Correct Regarding the SML

Question 50

Multiple Choice

Which of the following is correct regarding the SML?


A) The greater the marginal investor's risk aversion, the steeper the SML.
B) The greater the marginal investor's risk aversion, the flatter the SML.
C) The greater the marginal investor's risk aversion, the more negative the SML slope.
D) The lower the marginal investor's risk aversion, the steeper the SML.

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