The Eightfold Path is a guiding principle of

2 answers:

7 0

Eightfold Path is one of Buddhism’s teachings under the four noble truths. Others are the Noble Truth of the reality of Dukkha as part of conditioned existence The Noble Truth that Dukkha has a causal arising The Noble Truth of the end of Dukkha. These were the foundations that sprang numerous teachings on the religion. The fourth noble truth, the path that leads to Awakening serves as a guide to liberation or end of suffering. The eight fold path is further divided into 3 elements; moral (speech, action, livelihood), mental (effort, mindfulness, concentration) and wisdom (understanding and thought).

madam [21]3 years ago

6 0

I took the thing on usatestprep and the answer is Buddhism :) I got it right so yah... YW X'D

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<h3>What is the Security Market Line (SML)?</h3>

The security market line (SML) is the Capital Asset Pricing Model (CAPM). It gives the market’s expected return at different levels of systematic or market risk. It is also called the ‘characteristic line’ where the x-axis represents the asset’s beta or risk, and the y-axis represents the expected return.

Security Market Line Equation

The Equation is as follows:

SML: E(Ri) = Rf + βi [E(RM) – Rf]

In the above security market line formula:

E(Ri) is the expected return on the security.
Rf is the risk-free rate and represents the y-intercept of the SML.
βi is a non-diversifiable or systematic risk. It is the most crucial factor in SML. We will discuss this in detail in this article.
E(RM) is expected to return on market portfolio M.
E(RM) – Rf is known as Market Risk Premium.

Characteristics of the Security Market Line (SML) are as below:

SML is a good representation of investment opportunity cost, which combines the risk-free asset and the market portfolio.
Zero-beta security or zero-beta portfolio has an expected return on the portfolio, which is equal to the risk-free rate.
The slope of the Security Market Line is determined by the market risk premium, which is: (E(RM) – Rf). Higher the market risk premium steeper the slope and vice-versa
All the assets which are correctly priced are represented on SML.
The assets above the SML are undervalued as they give a higher expected return for a given amount of risk.
The assets below the SML are overvalued as they have lower expected returns for the same amount of risk.

Therefore, we can conclude that the correct option is A.

Learn more about Security Market Line (SML) on:

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