How would the Security Market Line be affected, other things held constant, if the expected inflation rate decreases and investors also become more risk averse?

Group of answer choices

The x-axis intercept would decline, and the slope would increase.

Both the y-axis intercept and the slope would increase, leading to higher required returns.

The y-axis intercept would increase, and the slope would decline.

The SML would be affected only if betas changed.

The y-axis intercept would decline, and the slope would increase.