Assume a risk-free rate of 5 percent and an expected market return of 15 percent. Now suppose that the SML shifts, changing slope, so that k_RF is still 5 percent but k_M is now 16 percent. What does this shift suggest about investors' risk aversion? If the slope were to change downward, what would that suggest?

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The Answer of Assume a risk-free rate of 5 percent and an expected market return of 15 percent. Now suppose that the SML shifts, changing slope, so that k_RF is still 5 percent but k_M is now 16 percent. What does this shift suggest about investors' risk aversion? If the slope were to change downward, what would that suggest?

Assume a Risk-Free Rate of 5 Percent and an Expected