The action which is prohibited by the US constitution is that no state should print money.
The US constitution
The US constitution is the supreme law of the United States of America. This is the document upon which the United states of America was founded. It originally was comprised of seven articles. It characterizes the national frame of government.
Other Actions Prohibited by the US constitution are
Below are some prohibited actions in the US constitution;
- No State shall enter into any Treaty, Alliance, or Confederation
- No state shall grant Letters of Marque and Reprisal
- No state shall print Money
- No state shall emit Bills of Credit
- No state shall make any Thing but gold and silver Coin a Tender in Payment of Debts
- No state shall pass any Bill of Attainder etc.
According to the question, the correct option is that no state shall print money.
Learn more about the United states constitution at brainly.com/question/453546
Answer:
C) recency errors.
Explanation:
Paul is seldom absent from work. However, an illness the previous week forced him to miss work for a day, and his supervisor evaluated his performance less positively than was warranted. This best illustrates the supervisor's vulnerability to <u>recency errors</u>. Recency error occurs when an employee or applicant is rated based on his or her most recent occurrence or performance, not taking into consideration the employees previous performance.
Paul's supervisor accessed him based purely on his most recent poor performance and did not consider is his previous good performance, he committed recency error.
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
