IDNLearn.com is designed to help you find reliable answers to any question you have. Find in-depth and trustworthy answers to all your questions from our experienced community members.

What would happen to the SML if risk aversion on the part of investors decreased (all else constant)? The SML would shift down but its slope would be unchanged. The slope SML would become flatter. The SML would shift down but its slope would become steeper. The slope SML would become steeper.