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Which of the following statements is (are) true? 1. If all investors become more risk averse, the security market line will have the same intercept
Which of the following statements is (are) true? 1. If all investors become more risk averse, the security market line will have the same intercept but with a flatter slope, and stock prices will increase. 2. If all investors become less risk averse, the security market line will have the same intercept but with a flatter slope, and stock prices will decrease. 3. If all investors become more risk averse, the security market line will have a parallel shift upward and stock prices will increase. 4. If all investors become more risk averse, the security market line will have a parallel shift downward and stock prices will decrease. Your choice: 4/25 Qs Statement 1 None of the statements Statement 2 Statement 4 Statement 3
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