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:
Use the percentage formula: P% * X = Y. Example: What is 10% of 150?
The whip system is in charge of facilitating communication and information sharing among party members of congress. Here, B is the right response.
A whip system ensures that party members vote in line with the party platform and not their personal views, the desires of their followers, or the requests of their voters. The "enforcers" of the party are the whips.
Whips, who often act as assistant leaders, are primarily responsible for tally votes and gathering party members for quorum calls. When the minority or majority leaders are not present, they occasionally step in. The managers of the parties in the legislatures are called whips.
Complete question:
Responsibility for communication among party members in Congress lies with the
a. Speaker of the House and the Senate president pro tempore.
b. whip system.
c. party's national committee.
d. party caucuses.
e. the Ways and Means Committee.
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Answer:
on grounds of 'Equal Protection' laws of the 14th Amendment.
Explanation:
Both Brown V. Board of Education and parents involved in Community Schools v. Seattle presented their case on grounds of 'Equal Protection' laws of the 14th Amendment.
In Brown V. Board of Education, the court ruled that 'separate but equal' was an unconstitutional provision and that the practice of segregation was 'inherently unequal'. It further ruled out that these unequal provisions violated the equal protection laws.
Similarly, the parents involved in Community Schools v. Seattle claimed and argued that racial tiebreaker in district schools subjugated and infringed 'Equal Protection' laws of the 14th Amendment.
Though the initial plan of the racial tiebreaker system was to prevent racial imbalance in schools, the court adjudged that the system was unconstitutional because it, more or less, contributed to unequal opportunity in getting admissions.
im not the best in this part of history but i do believe its
"He favored a broad interpretation of the Constitution."<span />
