Denmark Vesey was a Former Slave who gained his own freedom for himself. He fight Slavery by organizing the biggest Slave Revolts in the U.S History, with more than 1,848 members joining his Revolt. He was executed for his revolt in June 1822
Other things held constant, if the expected inflation rate DECREASES, and investors also become MORE risk averse, the Security Market Line would shift in<u> have a steeper slope </u>manner.
<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.
<u>Security Market Line Equation</u>
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.
<u>Characteristics of the Security Market Line (SML) are as below:</u>
- 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.
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The correct answer is D) Supplying Currency to banks
The Federal Reserve is in charge of monetary policy, meaning policy related to the money supply, rather than fiscal policy, such as government spending and tax collection. Monetary supply responsibilities involve determining what amount of currency to supply to banks, usually through the form of the interest rate.
The first casualty of that declaration was not German—but the British ocean liner Athenia, which was sunk by a German U-30 submarine that had assumed the liner was armed and belligerent. There were more than 1,100 passengers on board, 112 of whom lost their lives. Of those, 28 were Americans, but President Roosevelt was unfazed by the tragedy, declaring that no one was to “thoughtlessly or falsely talk of America sending its armies to European fields.” The United States would remain neutral.
I find the odd one is Zaire:it's not the name of a country, It used to be a name of a country, but since 1997 this country is called Democratic Republic of the Congo.
