About the risk aversion, Which of the following is true of

About the risk aversion

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Reference no: EM13849256

Which of the following is true of risk aversion?

a reduction in risk aversion causes the requires return for each level of risk to increase.

Changes in risk aversion, and therefore shifts in the SML, result from changing preferences of investors.

In general, widely share expectations of hard times ahead tend to cause investors to become less risk averse.

Greater risk aversion results in lower required returns for each level of risk.

Reference no: EM13849256

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