The market risk premium calculates the slope of the security market line.
What is market risk premium?
A risk premium is the higher rate of returns you can expect from riskier investments like stocks compared to risk-free investments like government bonds. The pricing model for capital assets is graphically represented by the security market line (SML), a line drawn on a graph. The SML can be used to assist in trying to compare an investment product's rate of return towards its level of risk.
Numerous exogenous factors can have an impact on the slope of a security market line. For instance, the economy's real interest rate could change, inflation might rise or fall, there could be a recession, and investors could start to take less risk generally.
In other words, higher risk also comes with higher rewards because more systematic risk is linked to higher expected returns for securities. The linear relationship also explains why security market line is indeed a straight line.
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Answer:
c=1146
Explanation:
Given 5y=3478 - 3c
Then if y= 8 then substitute y in the equation as
5*8=3478-3c
40=3478-3c ------collect like terms as;
3c=3478-40
3c=3438
c=3438/3 =1146
It is false that the reduction of carbon dioxide emissions poses few threats to sustaining economic growth in developing countries.
Given that the reduction of carbon dioxide emissions poses few threats to sustaining economic growth in developing countries.
We are required to say whether the statement is true or false.
Economic growth basically defined as the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy over a certain period of time.
The reduction of carbon dioxide emissions does not poses threats but benefits our country and in result lead to increase in economic growth of the countries.
Hence it is false that the reduction of carbon dioxide emissions poses few threats to sustaining economic growth in developing countries.
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Originally, the SAT I was meant to test aptitude and the SAT II was meant to test achievement. That is to say, one tested what you were capable of and the other tested what you knew. But when the College Board moved away from the idea that the SAT I tests innate ability, they framed it as a reasoning test, making the difference between the two less defined.
With the latest changes, the SAT I (now just the SAT) is more focused than ever testing knowledge rather than logic. At this point, I would say that the SAT tests general knowledge and and the Subject Tests assess topical knowledge.
