What we are looking for is the confidence interval.
Given:
Sample it is denoted by n = 10
Mean = 80
Standard deviation = 12
Confidence Interval = 99%
Now compute for the margin of error, the formula is Za/2 * σ/√(n)
A 99% level of confidence has a critical value of zα/2 = 2.58.
The standard error is σ/√(n) = 3.162
Multiply 2.58 by 3.162 = 9.8 is the margin of error.
The formula for confidence interval is x̅ ± Za/2 * σ/√(n)
= 80 ± 9.8
= 70.2 < x< 89.8
Answer:
i kill a man that is the craziest conversation i have overheard
Explanation:
YOU!!!
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:
Explanation:
25x6 is the answer to this question
Answer:
Declaration of Independence Timeline Complete the timeline using the seven events mentioned in your Studies Weekly newspaper. The first event will be the Royal Prodamation of 1763 and the timeline will end with the signing of the Declaration of Independence. Briefly explain each event in the box provided.
Explanation:
Presentation U.S. History Primary Source Timeline ... the Seven Years' War in 1763, few colonists in British North America objected to their place in the British Empire. ... First Shots of War, 1775 For some months, people in the colonies had been ... (the conflict would not become a "war for independence"
