Stress refers to a feeling of emotional or physical tension. This feeling usually comes from an event or an idea that makes us feel frustrated, angry or nervous. These pressures can force our bodies to react in particular ways, usually resulting in damage over long periods of time. However, stress can also be dependent on culture.
Different cultures find different situations stressful. For example, in some cultures, social acceptance or status is a constant source of stress, while in others, differences among individuals and lack of acceptance are not considered major problems.
As an example, we can look at the cultures of Japan and the United States.
In Japanese culture, social standing is an important source of stress. Japanese people feel a responsibility towards the rest of their community, which can lead them to prioritize others before themselves. The needs of the community and the approval of others can be important sources of stress.
On the other hand, in American culture, the individual tends to be prioritized. This means that Americans tend to feel more stressed when faced with personal problems, such as lack of individual success or prestige.This stems from a lack of personal recognition, rather than a sense of commitment or responsibility towards others.
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 investigation and assessment of the effects that various events or incidents can have on the organization is referred to as :Business Impact Analysis.
<h3>What is Business Impact Analysis?</h3>
Business Impact Analysis is used to evaluate, measure and analyze the impact an event such as fire disaster has on a business.
Hence, Business Impact Analysis is important for business as it help to investigate and assess the effect an incident have on a business or an organization which will inturn can help to finds ways to reduce the loss incurred.
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Modernization of Japan’s industry helped the country become politically and financially stronger.
Answer:
classical conditioning.
Explanation:
Classical conditioning: In psychology, the term classical conditioning was proposed by one of the most influential psychologist and behaviorist named Ivan Pavlov. He has discovered the classical conditioning theory while experimenting on dogs and has included a few basic terms associated with it including unconditioned stimulus, unconditioned response, the conditioned stimulus, and conditioned response.
Classical conditioning is described as a learning theory that involves a conditioned stimulus that gives rise to a conditioned response after connecting with an unconditioned stimulus.
In the question above, the technique best illustrates the classical conditioning.
