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10 pts Question 2 If investors on average become more risk averse and prefer all bonds to stocks, then all else equal, one would expect

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10 pts Question 2 If investors on average become more risk averse and prefer all bonds to stocks, then all else equal, one would expect The term structure to become flatter (less slope Interest rates at every maturity to fall O Interest rates at every maturity to rise O The term structure to become steeper (greater slope)

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