According to the security market line, there is no reward for waiting.

According to the security market line, there is no reward for waiting. In other words, in order to have any expected return at all, an investor must invest in risky assets.

Indicate whether the statement is true or false.

ANSWER

Answer: FALSE
Explanation: According to the security market line, there is a reward for waiting. The risk-free asset can provide you with a positive return without uncertainty of return.