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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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A holistic lifecycle for developing security architecture that begins with assessing business requirements and subsequently crea
NeTakaya

Answer:

SABSA

Explanation:

Sherwood applied business security architecture (SABSA) is a body that provides enterprise security and and service management for the administration of network security experts. It helps in achieving completeness and justification of all the components of enterprise security architecture and also aid the objectivity of security architecture.

It supports the development security architecture by firstly assessing the business requirement and subsequently creating a chain of traceability through phases of strategy , design , implementation and metrics

7 0
3 years ago
If total spending rises from one year to the next, then a. the economy must be producing a larger output of goods and services.
CaHeK987 [17]

Answer:

The correct answer is option c.

Explanation:

A rise in total spending can mean several things. An increase in the production of goods and services is likely to cause an increase in consumption and hence spending.  

An increase in the price of existing goods and services may lead to an increase in spending.

As more money will be required now to purchase the same level of goods and services

Or both the reasons can apply.

7 0
3 years ago
Ottawa, Inc. provides the following data: 2019 2018 Cash $23,000 $22,000 Accounts Receivable, Net 37,000 37,000 Merchandise Inve
Kaylis [27]

Answer:

The days' sales in inventory for 2019 is 85.88 days

Explanation:

For computing the days' sales in inventory first we have to compute the inventory turnover ratio.

Inventory turnover ratio =  Cost of goods sold ÷ average inventory

where,  

Average inventory = (Opening balance of inventory + ending balance of inventory) ÷ 2

= ($25,000+ $ 55,000 ) ÷ 2

= $40,000

And, the cost of good sold is $170,000

Now put these values to the above formula  

So, the answer would be equal to  

= $170,000 ÷ $40,000

= 4.25 times

Now days sales inventory = Total number of days in a year ÷ inventory turnover ratio

= 365 days ÷ 4.25 times

= 85.88 days

4 0
3 years ago
a pilot applies for life insurance. the insurer approves the application with a $10 additional monthly premium modification due
trasher [3.6K]

Considering the situation described, the insurer will likely issue the coverage with an <u>Aviation Exclusion</u>.

The addition of <u>Aviation Exclusion</u> risk would curb the insurer's liability to that risk associated with the insurance contract.

This implies that considering the tendency of a pilot to die (not as a fare-paying passenger) in a plane crash or Aviation accident. Still, as a pilot, the addition of <u>Aviation Exclusion</u> would limit or void the insurance policy related to life.

Hence, in this case, it is concluded that the correct answer is "<u>Aviation Exclusion</u>."

Learn more about Aviation Exclusion here: brainly.com/question/14307093

3 0
2 years ago
90% of people marry there 7th grade love. since u have read this, u will be told good news tonight. if u don't pass this on nine
ch4aika [34]
This is incorrect!!!!!!!
5 0
3 years ago
Read 2 more answers
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