It can be deduced from the given that what Mario used as payment for the goods that he acquired is also goods. The answer to this item is commodity. It is a type of money that is not in a form of cash but has a value that can be an exchange for another commodity.
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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A finalidad del área de desarrollo personas cívico ciudadano (DPCC) es explicar a las personas cual es la importancia de vivir en una sociedad democrática , también nos enseña las importancia de ser un buen cuidadano.
Answer: B. Two or more individuals who share a set of norms, values or belief and have a certain implicitly or explicitly defined relationships to one another such that their behavior is interdependent.
Explanation: A group is simply composed of more than one person, and as such members of a group have something in common, it could be a behavior, attitude, like or anything which is common to all members of the group. A group usually possess a relationship pattern which may be lucid or very obvious and sometimes may not be known to others people outside their group that is they exhibit a a sort of positive correlation and as such members of the group exhibit a mutual dependence on one another.
Answer:
Archaeologists are people who study the ancient remains of ancient humans, like pottery, skulls, etc.
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