Happy Corp.'s new required rate of return is Tool tip: Mouse over the points on the graph to see their coordinates. 20 REQUIRED RATE OF RETURN (Percent) 16 0.8 New SML 1.2 0.4 1.6 2.0 RISK (Beta) The SML helps determine the risk-aversion level among investors. The higher the level of risk aversion, the Which of the following statements best describes a shift in the SML caused by increased risk aversion? O The risk-free rate will decrease. O The risk-free rate will remain constant. O The risk-free rate will increase. ? the slope of the SML. Happy Corp.'s new required rate of return is Tool tip: Mouse over the points on the graph to see their coordinates. 20 REQUIRED RATE OF RETURN (Percent) 16 0.8 New SML 1.2 0.4 1.6 2.0 RISK (Beta) The SML helps determine the risk-aversion level among investors. The higher the level of risk aversion, the Which of the following statements best describes a shift in the SML caused by increased risk aversion? O The risk-free rate will decrease. O The risk-free rate will remain constant. O The risk-free rate will increase. ? the slope of the SML