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Kamila [148]
2 years ago
12

How would the Security Market Line be affected, other things held constant, if the expected inflation rate decreases and investo

rs also become more risk averse? a. The y-axis intercept would decline, and the slope would increase. b. The x-axis intercept would decline, and the slope would increase. c. The y-axis intercept would increase, and the slope would decline. d. The SML would be affected only if betas changed. e. Both the y-axis intercept and the slope would increase, leading to higher required returns.
Business
1 answer:
garik1379 [7]2 years ago
8 0

Answer: a. The y-axis intercept would decline, and the slope would increase.

Explanation:

The security market line is simply refered to as the graphical representation of a CAPM which is the capital asset pricing model and it simply shows the market risk, of the securities in the market which is then plotted against the market return.

When the expected inflation rate decreases and the investors also become more risk averse, the Security Market Line would be affected, as the y-axis intercept would decline, and the slope would increase.

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Answer: There are many careers that would support your well-being. Career exploration allows you to find the one that pays the most so your well-being is enhanced to the highest degree

Explanation:

When making a career research, it's vital to consider the opinion of the people that already have that career as their occupation as they already have the required knowledge concerning the job.

Also, one should consider the availability of job, the skills, abilities that one has and the future prospects of the job.

Furthermore, we all have something we value about careers and our opinions regarding that might be different.

Therefore, the correct option is "There are many careers that would support your well-being. Career exploration allows you to find the one that pays the most so your well-being is enhanced to the highest degree". This is false.

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3 years ago
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Answer:

The overview of the statement is summarized below.

Explanation:

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Genesis Scents has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can
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When this is the case in a company, individual divisions are allowed to transfer to each other at a rate equal to their Variable Costs. This is the general rule.

The Variable Costs for the containers is $4 so that is the transfer price as well.

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