which of the following statement best describe the shape of the sml if investor were not all risk averse

positive slope + steeper than it would be if investor were risk averse

negativ slope

horizontal line

positive slope+ flatter than it would be if investor were risk averse

based on your understanding of p/e ratio in which of the following situations would average trailing p/e ratio of the S&p index be higher

forecast earning rise

forecast earning fall