The risk-return trade-off implies that the return on a riskless asset must be zero.

Name: The risk-return trade-off implies that the return on a riskless asset must be zero.
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The risk-return trade-off principle suggests that higher risk is associated with the potential for higher returns, but it does not imply that the return on a riskless asset must be zero. Riskless assets typically offer a low but positive return.

The Risk-Return Trade-Off Implies That the Return on a Riskless