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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The photograph of President George W. Bush taken in the year 2003 reveals the true statement where he appealed for gaining the support for military efforts in Iraq. The photograph taken in the year 2008 explains the biasness of Bush in respect of the memory of 2003.
Option B is the correct answer.
<h3>What is meant by a photograph?</h3>
A photograph is a picture taken from a camera in which a moment is captured for reliving again.
George Washington Bush was the forty-third president of America. He served his presidency to the country of America from the year 2001 till the year 2009. He was also a governor in Texas state from 1995 to 2000.
Therefore, the 2003 photograph showed an appeal for taking support for the military operations in Iraq, and the 2008 photo was revealing biased behavior with respect to the memory of 2003 towards the Bush.
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Answer:
He thinks that hitting people and that violence is okay.
Explanation:
Children get taught everything at a young age so that they don't forget because it "sticks to them better" so they try to do their best and teach them what's proper at a young age. Wong in this case; was taught that hitting is okay and he also wants to release his anger. Since parents are role models for kids, he thinks that what he's doing is correct.
Answer:
That statement is False
Explanation:
We did adopted that policy in the past. But we start to change it during world war II. After winning the war, united states start to gradually change its foreign policy and play a more active role in helping out other nations. (this can be seen by heading the united nations and paying contribution to fight environmental damage across the globe)
Some cognitive-behavioral theorists believe that the pull of addiction is as much about the <u>expectancy</u> of the pleasurable effects a drug will bring as it is about those effects.
<h3><u>Cognitive behavioral therapy: what is it?</u></h3>
A variety of issues, including depression, anxiety disorders, problems with alcohol and other drugs, marital issues, eating disorders, and serious mental disease, have been successfully treated with cognitive behavioral therapy (CBT), a type of psychological care. According to a number of studies, CBT significantly improves functioning and quality of life.
Numerous studies have shown that CBT is either as effective as or perhaps more effective than other types of psychological therapy or psychiatric drugs.
The focus of CBT therapy is on the patient's present circumstances rather than the events that led to their problems. Although some knowledge of one's past is necessary, the main goal is to move forward in order to improve one's ability to cope with life.
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<u>Correct question:</u>
Some cognitive-behavioral theorists believe that the pull of addiction is as much about the _____ of the pleasurable effects a drug will bring as it is with actually experiencing those effects.
