An analyst behieves that inflation is going to increase by 2.0% over the next year, while the market risk premium will be unchanged. The analyst uses the Capital Asset Priang Model (CAPM). The following graph plots the current SML Caiculate Happy Corp.'s new required retum. Then, on the graph, use the green points (rectangle symbols) to plot the new SML sugqested by this analyst's prediction. Happy Corpis new required rate of return ts The SML helps deteimine the nisk-averson level among investors. The higher the level of nisk aversion, the tho siope of the sme. Which of the following statements best describes the shape of the SML d evestors were not at all rick averse? The SML would have in postive slope, but the slope woukd the steeper than twough jesta The SML helps determine the risk-aversion level among investors. The higher the level of risk aversion, the the slope of the SMI Which of the following statements best describes the shape of the SML if investors were not at all nisk averse? The SML would have a positive slope, but the slope would be steeper than it would be dinvestors were risk averse?. The SML would have a negative slope. The SML would be a horizontal line. The SML would have a positive slope, but the slope would be flatter than it would be if investors were risk averse