The correct answer is 1; Stop completely and drive ahead when you can safely do so.
Further Explanation:
When there is a flashing red light, the driver will still need to stop completely. Since there are other cars at the cross street and they don't have a light, the driver needs to completely stop and resume when it is safe.
Red lights that are solid should also be stopped at. In some states, a driver can turn right on red when there is no oncoming traffic. A driver should never perform a rolling stop at a red flashing light as this is illegal and can result in fines or an accident.
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Answer:
It's called the "iron triangle"
.
Explanation:
The "iron triangle" is a term used by political scientists to classify the policy-making association with the three groups cited on the question (interest groups, congressional committees and the bureaucracy). The main objective is to create and consolidate their own power base, making allies and have more influence through the political arena.
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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