The risk-free rate of return is the investor reward for:

Question

Quizplus · Accepted Answer

The risk-free rate of return is the return that an investor can earn by investing in a risk-free asset, such as U.S. Treasury bills. This return compensates the investor for postponing consumption, as they are not using their money for immediate spending but are instead lending it out to earn a return. It is not related to risk-taking or stock-price variability, therefore options A, C, and D are incorrect.

The Risk-Free Rate of Return Is the Investor Reward For