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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In a ___ program, high school graduates have the chance to learn about and train in a chosen field in a short period of time
IM SO STRESSEDDDD
129600/24= 5400 seconds
5400/60= 90 minutes
Therefore the movie is 90 minutes long.
The accurate statement about the Securities and Exchange Commission is:
- <u>C. It is an independent agency that regulates finance</u>
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The Securities and Exchange Commission is a government agency that is in charge with protecting the financial interests of the country and making sure that the economy is stable.
Some of the common misconceptions about the SEC are that:
- They can convict people of crimes without a trial
- They are a part of the government’s cabinet department.
- It is associated with the legislative branch.
However, these are all wrong because their activities are totally independent and they regulate finance.
Therefore, the correct answer is option C
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Answer:
quarter is like test and semester is like exam
