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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It would be most difficult to use the <u>medical model</u> to explain why bulimia nervosa occurs mostly in western cultures.
Bulimia is an eating disorder. it is characterized by using control episodes of overeating, called bingeing. Which is followed through purging with techniques that includes vomiting or misuse of laxatives. Bingeing is consuming lots large amounts of meals than you will generally devour in a short time period, usually less than 2 hours.
Bulimia can subsequently result in physical troubles associated with now not getting the right nutrients, vomiting plenty, or overusing laxatives. possible headaches include: feeling tired and weak. Dental issues – stomach acid from chronic vomiting can harm tooth enamel.
The DSM-III-R indexed bulimia as a separate eating sickness for the primary time. The American Psychiatric Association noted binge consumption in the Diagnostic and Statistical manual of mental disorders (DSM). It became listed as a characteristic of bulimia.
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<span> The correct answer is variable ratio schedule.</span>
A person is participating in partial hospitalization when he/she is being treated for schizophrenia and goes each day to a center where the focus is on improving social skills and receiving therapy. Partial hospitalization provides a program for outpatient psychiatric services. This is more intense than the care given by a doctor. Likewise, this treatment is given during the day and does not require the patient to stay overnight.
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Answer: Nice. I think so.
Explanation:
