Answer:
lack knowledge of geographic al feature lack of manpower necessary to operate the work
Answer:
<em>Primary sources are firsthand, contemporary accounts of events created by individuals during that period of time or several years later (such as correspondence, diaries, memoirs and personal histories). These original records can be found in several media such as print, artwork, and audio and visual recording. Examples of primary sources include manuscripts, newspapers, speeches, cartoons, photographs, video, and artifacts. Primary sources can be described as those sources that are closest to the origin of the information. They contain raw information and thus, must be interpreted by researchers.</em>
<em>Primary sources are firsthand, contemporary accounts of events created by individuals during that period of time or several years later (such as correspondence, diaries, memoirs and personal histories). These original records can be found in several media such as print, artwork, and audio and visual recording. Examples of primary sources include manuscripts, newspapers, speeches, cartoons, photographs, video, and artifacts. Primary sources can be described as those sources that are closest to the origin of the information. They contain raw information and thus, must be interpreted by researchers.Secondary sources are closely related to primary sources and often interpret them. These sources are documents that relate to information that originated elsewhere. Secondary sources often use generalizations, analysis, interpretation, and synthesis of primary sources. Examples of secondary sources include textbooks, articles, and reference books.</em>
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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