Which of the Following Assumptions About the Security Market Line

question 2

Multiple Choice

Which of the following assumptions about the Security Market Line is NOT true?

• A)There is a basic reward for waiting: the risk-free rate.
• B)The greater the risk,the greater the expected return.
• C)There is an inconsistent trade-off between risk and reward at all levels of risk.
• D)All of the above statements are true.

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