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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

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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 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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