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The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corb. (HC). Based

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The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corb. (HC). Based on the graph, complete the table that follows: 200 160 120 REQUIRED RATE OF RETURN (Percent) 0,6,7.6 30 Reum on HC's Stock 40 0 04 05 15 20 to RISK (Beta) SME REQUIRED RATE OF RETURN Porcon 04 0 12 RSK (B) The SML helps determine the risk-aversion level among investors. The higher the level of risk aversion, the the slope of the SML Which of the following statements best describes the shape of the SML ir investors were not at all risk averse The SML would have a positive slope, but the slope would be steeper than it would be if investors were risk averse The SML would have a positive slope, but the slope would be flatter than it would be if investors were risk averse. The SML would have a negative slope. The SML would be a horizontal line

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