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  3. if investors on average become less risk averse an

If investors on average become less risk averse and prefer stocks to all bonds, then...

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Accounting

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If investors on average become less risk averse and prefer stocks to all bonds, then all else equal, one would expect O The term structure to become steeper (greater slope) O Interest rates at every maturity to rise O Interest rates at every maturity to fall O The term structure to become flatter (less slope)

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