In the last decade of the 18th century, both France and England experienced revolutions. In France it was a political revolution against the Old Order, and in England it was an economic revolution that changed the way wealth was produced and shared.
The correct answer is letter b. delusion.
Delusion refers to the false personal belief, wherein an individual believes in his or her knowledge yet does not believe others, though they are right and have sufficient evidence. Being delusional may be cause by the lack of evidence or incomplete knowledge and wrong perception of things.
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.
Learn more about Security Market Line (SML) on:
brainly.com/question/15877803
#SPJ4
Answer:
Berton and colleagues (2006) found that the regulation of avoidance behavior in mice confronted by an aversive social target requires BDNF (brain-derived neurotrophic factor) from the: <u>B. vental tegmental area (VTA)</u>.
Explanation:
The vental tegmental area (VTA) is located in the midbrain, this section of the brain contanins different type of neurons. This area is in charge of the reward system, that has to do with the reinforcement behavior.
Answer: There movement kind-off help them exercise and there ideas make the society a better place. The effect off the movement makes them have less food cause they can't carry all there foods to where they are moving to.
Explanation: Well if you move a lot you burn lots of calories and if they come up with an idea they tell the king and him might like or not like it. And if they move a lot they will have less food cause you can't carry all the food you have.
By the way I am 12.
