Question: Tool tip: Mouse over the points on the graph to see their coordinates. ? 20 New SML 16 12 REQUIRED RATE OF RETURN (Percent) 0

Tool tip: Mouse over the points on the graph to see

Tool tip: Mouse over the points on the graph to see their coordinates. ? 20 New SML 16 12 REQUIRED RATE OF RETURN (Percent) 0 0 0.4 1.6 2.0 0.8 1.2 RISK (Beta) The SML helps determine the risk-aversion level among investors. The steeper the slope of the SML, the the level of risk aversion. Which of the following statements best describes the shape of the SML if investors were not at all risk averse? The SML would have a negative slope. The SML would be a horizontal line. The SML would have a positive slope, but the slope would be flatter than it would be if investors were risk averse. The SML would have a positive slope, but the slope would be steeper than it would be if investors were risk averse

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