What were the consequences of the United States westward expansions and its growing diplomatic assertiveness?

Other things held constant, if investors become more risk averse, the security market line (sml) would (2 points)

poizon [28]

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.

Learn more about Security Market Line (SML) on:

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6 0

2 years ago

Other administrative workers play key roles in the success of a human services organization. They are the ones who write _____ t

liraira [26]

The correct answer is grants

Explanation: An economic or social subsidy is a financial subsidy, usually granted by the government, to public or private institutions of an assistance nature. In simpler terms, it is when a public or private institution gives money to another, without the need to return this money, which is common in cases of loan or financing.

5 0

3 years ago

Read 2 more answers

One difference between anthropology and many other social sciences, such as sociology, is that anthropology is concerned with hu

Luda [366]

Answer:

biology.

Explanation:

Anthropology can be defined as the scientific study of humanity with respect to human biology, human behaviors, human societies, cultures, beliefs, survival and the evolutionary history of humans (Homosapiens) through time and space. There are various fields under anthropology and these includes Ethnomusicology, Biological anthropology, Linguistic anthropology, Sociocultural anthropology, Archaeology, Applied anthropology, Economic anthropology, and Visual anthropology.

On the other hand, sociology can be defined as a social science that deals with the study of the socio-cultural interaction of humans with respect to the structure, functioning and development of their society.

The main purpose of sociology is to develop and enhance human knowledge or understanding of important socio-cultural processes through the gathering and analysis of all aspects of the social life of the people living in a society.

Hence, the main difference between anthropology and many other social sciences such as human geography, economics, sociology, law, psychology, political science, etc., is that anthropology is typically concerned with human biology as well as human behavior.

6 0

3 years ago

Once you have written down your career goals, you should then identify your ________, which are your skills and knowledge that c

vagabundo [1.1K]

Once you have written down your career goals, you should then identify your <u>ability</u>, which are your skills and knowledge that can be applied to work.

<h3>What are career goals?</h3>

It means those well-defined statement that explains the profession that an individual intends to pursue throughout his career.

Hence, when we are writing down the career goals, you should then identify your ability, which are your skills and knowledge that can be applied to work.

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