The SML Intercepts the Vertical Axis at [Blank]

question 13

Multiple Choice

The SML intercepts the vertical axis at [blank].

• A)beta = 1
• B)the risk-free rate
• C)the market risk premium
• D)the expected return on assets equals the expected rate of return on the market portfolio

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Definitions:

Amygdala

A part of the brain that plays a crucial role in feeling emotions, specifically fear and pleasure.

Flashbulb Memories

Vivid, detailed memories of significant or emotional events, which feel as though they have been captured in a snapshot.

Emotionally Significant

Pertaining to events or experiences that have a strong affective impact on an individual, often shaping behavior and memory.

Limbic System

A complex system of nerves and networks in the brain, involved in emotions and drives such as fear, pleasure, and anger.