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.
Answer: C
Explanation: C) There is a CONSISTENT trade-off between risk and reward at all levels of risk.
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