<span>Behavioralist perspective. Behaviorism is a psychological approach that is concerned with how external factors called environmental factors (known as stimuli) influences observable behavior (the response). The behavioralist believes we are the result of what we have learned from our environment but they also believe that the environment influences to a large extent our attitudes and dispositions to events; they tend to view people as controlled by their environment just as Mrs Thompson who believes her son's excellent performance is a direct result of her attitude. She believes her son's excellent performance is as a result of her praise and adoration. This clearly portrays the behavioralist who believe the son's great performance is directly influenced by the mother's actions.</span>
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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<em>The Sibley Commission was formed in Georgia in response to the Supreme Court ruling of Brown vs. Board of Education. The purpose of the Sibley Committe was to ;</em>
D. Decide if desegregation was constitutional in Georgia
<u>The Brown vs. Board of Education is the Court that would declare state laws establishing separate public schools for black and white students to be unconstitutional. </u>
<u>This was my original thought that the answer would be, however, The Sibley Commission was created to survey on whether or not to integrate schools. Which leaves me thinking the answer might most likely be answer choice A as well.</u>
A. Determine if Georgians wanted to integrate schools
<u>Georgians would rather see schools closed that integrated. These lawsuits were combined into the landmark Brown v. Board of Education Supreme Court case that outlawed segregation in schools. </u>
Answer choice A seems about correct.
