Answer:
A market in which goods or services are traded illegally is called a black market.
Explanation:
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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:A fee simple defeasible
Explanation:A fee simple defeasible is a conveyance of property under stipulated conditions which cannot be violated. The person who holds a fee simple defeasible holds that property as a fee simple subject with this conditions attached to it. If the new owner doesn't abide by these conditions, the property get returned back to the original owner or sold to another person.
Answer:
<u>b. Responses are difficult to interpret in psychological terms.</u>
Explanation:
<u>In psychology,</u> the "Minnesota Multiphasic Personality Inventory" is also referred to as "MMPI" and is determined as one of the different psychological tests that is responsible for assessing psychopathology and different personality traits. However, it is formerly intended to test different people who are being a suspect of possessing some clinical or mental health issues.
<u>In the question above, the correct answer is option b.</u>
