The taxes imposed by the Stamp Act led to revolts by the colonists who now sought to overthrow the British government. It sparked protests against the Stamp Act and riots. This event led to the American Revolution because soon these colonists would become Patriots and would go against the British in the Revolutionary War hoping to overthrow British rule.
I believe the answer is behavioral perspective
Behavioral perspective focus on how we can make individuals behave a certain way by by conditioning a certain stimulus-response relationships.
To achieve this, most of them would utilize reward or punishment to make the individuals lean toward a certain behavior.<span />
1,2,3 answer your question
Sam is in Piaget's preoperational stage of cognitive development. In addition, the preoperational stage is the second stage in Piaget's theory of cognitive development in which this stage starts around age 2 as children start to talk and last until approximately age 7. Throughout this stage, the children begin to take part in a symbolic play and learn to use symbols.
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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