Question: Tool tip: Mouse over the points on the graph to see their coordinates. New SML 0 0.4 0.8 1.2 1.6 2.0 20 16 12 8

Tool tip: Mouse over the points on the graph to see their coordinates. New SML 0 0.4 0.8 1.2 1.6 2.0 20 16 12 8 4 0 REQUIRED RATE OF RETURN (Percent) 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 a shift in the SML caused by increased risk aversion? The risk-free rate will decrease. The risk-free rate will increase. The risk-free rate will remain constant

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