During the Financial Crisis of 2007-2008, investors demanded much higher risk premiums in their investments. This caused the SML to:

Name: During the Financial Crisis of 2007-2008, investors demanded much higher risk premiums in their investments. This caused the SML to:
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During the Financial Crisis, the increased demand for risk premiums meant that investors required higher returns for taking on additional risk, causing the Security Market Line (SML) to become steeper.

During the Financial Crisis of 2007-2008, Investors Demanded Much Higher