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The steeper the slope of the security market line the the greater the degree of risk aversion. a. True b. False
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The steeper the slope of the security market line the the greater the degree of risk aversion.

a. True
b. False

User IAj
by
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1 Answer

5 votes

Answer:

true

Step-by-step explanation:

the security market line is a graph that shows the relationship between the expected rate of return of a security and systemic risk.

The slope of the SML is the market risk premium. The steeper the slope, the greater the risk aversion.

User Horacex
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