Answer:
The answer is "evolutionary"
Explanation:
In the evolutionary approach, it uses analysis techniques for the basic principle, which is used to clarifies the basic human behavior pattern, and it also includes its adjustment, reproductive success, and all the natural processes. This theory is used to explain the personality of the human-like, emotional, and physiological features when it changes as responsive natural processes ingredients.
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:
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Answer:
the action or process of gradually reducing the strength or effectiveness of someone or something through sustained attack or pressure.
"the council is trying to wear down the opposition by attrition"
Explanation:
Hope this helped Mark BRAINLEST!!!
Answer:
C) 3 sec
Explanation:
We must have to maintain the spacing of 3 Seconds. To be on the safer side, we should not enter into the gap which is way too close. Afterwards, we have to keep an eye on the other vehicles around us as well by using our both side mirrors and the back mirror. We should use indicators when necessary and we then must keep 3 second of distance between us and the next vehicle. This is very necessary because we can easily stop our vehicle by pulling the breaks and when it is required. Always try to remain on the safe side, main logic here is; Precaution is better than cure.
Crime control through due process, I believe.
