The slope of the SML reflects the degree of risk aversion; the steeper its slope, the greater the degree of risk aversion.

Name: The slope of the SML reflects the degree of risk aversion; the steeper its slope, the greater the degree of risk aversion.
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The slope of the SML reflects how investors require a higher expected return for taking on higher levels of risk. A steeper slope indicates a higher degree of risk aversion since investors require a greater premium for taking on more risk.

The Slope of the SML Reflects the Degree of Risk