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The SML helps determine the level of risk aversion among investors. The higher the level of risk aversion, the the slope of the SML. Which

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The SML helps determine the level of risk aversion among investors. The higher the level of risk aversion, the the slope of the SML. Which kind of stock is most affected by changes in risk aversion? (In other words, which stocks see the biggest change in their required returns?) All stocks affected the same, regardless of beta Medum-beta stocks Low-beta stocks High-beta stocks

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