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    Financial Management Theory and Practice Study Set 3
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    Exam 7: Risk, Return, and the Capital Asset Pricing Model
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    The Slope of the SML Is Determined by Investors' Aversion
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The Slope of the SML Is Determined by Investors' Aversion

Question 31

Question 31

True/False

The slope of the SML is determined by investors' aversion to risk. The greater the marginal investor's risk aversion, the steeper the SML.

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