Most of all, there are a lot of cities on the coast: for example LA, NY, Lisbon, Sydney, Barcelona, Rio de Janeiro. Those cities have a big population. If the sea level rises, people will have to move away from those cities (and if it rises rapidly, they might die in the flood).
Further, it could contaminate our storages of drinking water (sea water is salty and can't be drunk).
Also, it will mean less land, which also means less land for agriculture.
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 invention of movable type helped spread learning to more people as It resulted in the publishing of more books. Option B. This is further explained below.
<h3>What is
movable type?</h3>
Generally, movable type is simply defined as a printing method in which each piece of type is comprised of a single letter or another character, allowing for the production of any desired sequence or line.
In conclusion, With the advent of moveable type, more books could be published, allowing more people to benefit from education.
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week 1 : changing water into wine
week 2: healing the Royal officials son
week 3: healing the paralytic at the pool
week: 4 feeding over 5,000 with fish and loaves week : 5 walking on water week 6 healing a man born blind and week : 7 raising lazaurs from the dead
