<span>The correct answer is TRUE. The locus of conflict is also the framework within which the conflict occurs. There are three types of locus of conflict. These are dyadic conflict, intragroup conflict and task conflict. Task conflict is that which arises from the goals of work. Dyadic conflict occurs between two people. Intragroup occurs in a group.</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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Answer:
d. Forcing
Explanation:
Forcing technique: The term "forcing technique" is described as one of the different techniques of conflict resolution in which an individual tends to use some power or formal authority that he or she possesses in order to satisfy his or her concern in the absence of any regard associated with the party or person with whom he or she in conflict with.
In the question above, the given statement represents the forcing technique of conflict resolution.
Hello!
When a employment selection instrument is related to job success, the instrument is said to have validity.
D- there is a price to compasses(dont remember what it’s called) that will find “true north” based on the Earths magnetic field
