fill in the blank question\nif investors greatly dislike risk, the security market line will have to be very…

fill in the blank question\nif investors greatly dislike risk, the security market line will have to be very steep so that any given risk on the axis will result in a very large in compensation as measured by average expected rates of return on the axis. (enter one word per blank.)\nneed help? review these concept resources.\nread about the concept

fill in the blank question\nif investors greatly dislike risk, the security market line will have to be very steep so that any given risk on the axis will result in a very large in compensation as measured by average expected rates of return on the axis. (enter one word per blank.)\nneed help? review these concept resources.\nread about the concept

Answer

Brief Explanations:

The Security - Market Line (SML) plots risk (usually measured by beta) on the x - axis and expected return on the y - axis. When investors are highly risk - averse, a given increase in risk must be compensated by a large increase in expected return, making the SML steep.

Answer:

  1. x
  2. increase
  3. y