Respuesta :
The appropriate choice is (b). A riskless asset has an expected return that is greater than zero since there is a benefit to delaying consumption.
How can you locate risk-free investments?
An asset that has a definite future return and nearly little risk of loss is considered risk-free. Because they are guaranteed by the "full faith and credit" of the American government, Treasury bills, bonds, and other securities issued by the U.S. Department of the Treasury are viewed as risk-free investments.
The return an investor can anticipate from an investment over a given time period is determined by the risk-free rate. The entire yield of the government bond that matches the investment duration is subtracted from the current inflation rate to get the value of a risk-free rate.
It is believed that demand for risk-free assets will be considerable when investors have the choice to purchase them. Investors scramble to seize the chance, which generates profits.
For instance, putting money in the bank is regarded as a risk-free asset. He will anticipate rewards for delaying the use of his money ( delayed consumption)
Learn more about risk-free assets: https://brainly.com/question/22597610
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