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08: Assignment - Risk and Rates of Return The SML helps determine the level of risk oversion among investors. The steeper the slope of the

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08: Assignment - Risk and Rates of Return The SML helps determine the level of risk oversion among investors. The steeper the slope of the SML, the the level of risk aversion. Which kind of stock is most affected by changes in risk aversion? (In other words, which stocks see the biggest change in their required returns?) All stocks affected the same, regardless of beta Low-beta stocks High-beta stocks Medium-beta stocks

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