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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Answer:
FIRST: You had tell the person that you were going to start an action against them to be heard in "court". You had to bring witnesses with you so your witnesses could testify that the person was told why you were bringing an action, and that you had given this person a date, time, and location that they had to appear in court to defend themselves.
SECOND: You had to post a written notice near the courthouse that clearly stated the names of both parties, the charges, and the date, time, and location of your first trip to court on this action.
FIRST TIME IN COURT: The first trip gave both parties a chance to speak before a judge. If the judge felt there was enough cause, that judge would assign a trial date. That trial date had to be posted as well.
JURY SELECTION, TRIAL BY JURY: To be on a jury, you had to be a citizen. You had to be over 30 years of age. You had to swear that you would be fair to both sides. You did get paid. Juries were selected from volunteers. The number of jurors could be huge. Some trials had as many as 500 jurors who had volunteered to judge a case. Only the jury could bring in a decision that someone was guilty or innocent. The judge only kept order, but could not decide a trial outcome.
THE TRIAL: Both sides presented their case. Then the jurors voted. Majority ruled.
PUNISHMENT: Punishments varied. If found guilty, both sides, the person bringing the charge and the person being charged, suggested a punishment. The jury could not choose a third choice. They had to choice one suggestion or the other.
Explanation:
Answer:
A blended family
Explanation:
The blended family is the family where grandparents live with grandchildren. This is also called a step-family or a constituted family. It is also called a complex family where both the parents live with their children from the previous relationship and now make a new family.
These parents live together with children from the previous relationship and current relationship. The parents could be from the same sex or maybe heterosexual and may don't have children.
Thus Josephine families are the example of a blended family where she got two half-siblings from the father side and a half from the mother side. They all live together called a blended family.
Answer:
it would be A
Explanation:
Why would anyone do something that drastic if its not that important
I believe the answer is D.
Sorry is not right.
