I believe there are only 3 members.
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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well sahara is the largest hor desert of the world. the people became nomads, and goat and camel herders. The coatal area north of sahara does still produce fruits and some grains. Even durinf roman times the coastal area flourished with some powerful country/states, until the Romans conquered them and incoporated large areas of North Africa into the empire. if u will notice population in the sahara is not very large but is able to support certain tribes like the Tauregs.
..............hope it help!! >.<
We should use the safety guide for ourselves when we can barely see the road to avoid traffic collisions, although If it's very misty or foggy outside, fog lights can both improve your visibility and the visibility of other vehicles.
<h3>
In a fog, what should you do to stay safe?</h3>
Take it more slowly and give yourself more time to get there. Use your low-beam headlights to make your vehicle visible to people both in front of you and behind you since this also activates your taillights. If you have fog lights, use them. Never turn on your high beams. When vision clears, you must turn off your fog lights since they blind other motorists and block your brake lights. According to the Highway Code, headlights must be used when you can't see more than 100 meters in front of you. Fog lights can also be used in the front or back, however, this is not required.
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