The slope of the security market line is indicative of
A)the level of investor risk aversion.
B)the current level of inflation.
C)the current, relevant risk-free rate.
D)the risk of the individual security or portfolio of securities being evaluated.

Question

Quizplus · Accepted Answer

The slope of the security market line represents the level of investor risk aversion, as it reflects the additional expected return required by investors for taking on additional risk.

The Slope of the Security Market Line Is Indicative of