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New SML REQUIRED RATE OF RETURN (Percent) 00.4 1.6 2.0 0.8 1.2 RISK (Beta) The SML helps determine the risk-aversion level among investors. The higher

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New SML REQUIRED RATE OF RETURN (Percent) 00.4 1.6 2.0 0.8 1.2 RISK (Beta) The SML helps determine the risk-aversion level among investors. The higher the level of risk aversion, the steeper the slope of the SML. Which of the following statements best describes a shift in the SML caused by increased risk aversion? The risk-free rate will remain constant. The risk-free rate will decrease. The risk-free rate will increase

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