The Federal Budget is the term or choice that best defines the name of the President's financial plan which outlines funding recommendations for the next fiscal year.
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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Answer:
The Three causes of the Great Schism in Christianity are:
1. Dispute over the use of images in the church.
2. The addition of the Latin word Filioque to the Nicene Creed.
3. Dispute about who is the leader or head of the church.
<span>Some of the factors that prevent China from invading Taiwan are
that it is located in a strategic shipping route. The United States of America can quickly send
a fleet if such an invasion took place.
Taiwan is under the United States of America interest in the
Pacific. This was seen when President
Harry Truman sent a fleet to prevent the Chinese from invading what was left of
Chiang Kai Shek’s forces. Today the U.S.
is still on the alert and even the Chinese would not risk going to war if it
would lead to involving the Americans.</span>
Episodic binge eating followed by purging is a characteristic of the condition called Bulimia Nervosa.
Bulimia Nervosa is a a eating disorder which is characterized by episodes of overeating called as binge eating followed by purging by self-induced vomiting.
It is a potentially life threatening condition in which there is over fasting that can be dangerous for life. It is mostly seen in teenage girls who are excessively self obsessed about their body structure.
It can cause dehydration, fatigue, electrolyte imbalance, anxiety and mood swings.
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