The answer to this question is <span>holistic, comparative, and evolutionary
People who held this type of perspective tend to be able to see things in complex ways.
For human behavior in particular, these anthropologists will tend to believe that it resulted from several factors such as genetic, environment, social relationship, wealth, etc.</span>
He made Christianity the official language of the Kingdom.
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:
Representatives usually sponsor bills that are important to them and their constituents.
Representatives who sponsor bills will try to gain support for them, in hopes that they will become laws.
Two or more sponsors for the same bill are called co-sponsors.
Answer:
1 pound and 28 crowns is equivalent to 7 dollars.
Explanation:
Let the dollars be x , crowns be y and pound be z.
To find = 1z + 28y = ? (value in dollars)
5 dollars and 35 crowns is equivalent to 7 pounds
...[1]
4 dollars and 4 pounds is equivalent to 56 crowns
...[2]
Using value of from [1] here in [2]:
Now:
1z + 28y = ?
1 pound and 28 crowns is equivalent to 7 dollars.
