Refer to the graph.Which of the three Security Market Lines depicts the situation where investors most dislike risk?
A)line A
B)line B
C)line C
D)It cannot be determined from the graph.

Question

Refer to the graph.Which of the three Security Market Lines depicts the situation where investors most dislike risk?
A)line A 
B)line B 
C)line C 
D)It cannot be determined from the graph.

Quizplus · Accepted Answer

Line C has the steepest slope, indicating that investors require a higher expected return for every level of risk. This suggests that investors dislike risk the most on this line compared to the others.

Refer to the Graph