Answer:
Unconditioned Response
Explanation:
Unconditioned response is an automatic reflex that occur in response to an unconditioned stimulus. The response are natural and innate and are often not learnt.
The response of the chopper by salivation at the sound of the CD is unconditioned, it is a reflex action that occur due to an action that was taken which was the sound of CD.
They did not learn the action but they know how to respond because it is innate.
When an individual salivate to a nice smell of food it is unconditioned response, the response was triggered by the action and it is a reflex.
There is nothing I can help you with that I see of.
Answer:
Confucianism is an ethic of moral uprightness, social order, and filial responsibility. Daoism was a philosophy of universal harmony that urged its practitioners not to get too involved in worldly affairs. Legalism is a theory of autocratic, centralized rule and harsh penalties.
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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