Question: q.6.2 QUESTION 2 A decrease in risk aversion would cause a in required return. [Reminder. Rs = Rrf + B (Rm - Rrf).....Aka required return

q.6.2

QUESTION 2 A decrease in risk aversion would cause a in required return. [Reminder. Rs = Rrf + B (Rm - Rrf).....Aka required return = risk free rate + B* (market return-risk-free rate)... also MRP = Rm- Rrf. aka market risk premim = market return-risk-free rate ] Increase O Decrease O No change Percentage returns because they are more honest 1 poi

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