In general, the more liquid an asset, the higher its return. True False

FalseThe statement is not necessarily true. Liquidity refers to the ease with which an asset can be converted into cash without affecting its market price. While liquid assets are generally easier to sell and buy, the relationship between liquidity and return is not straightforward. In fact, there are several factors that can influence the return on an asset, including its inherent characteristics, market conditions, and investor expectations. Therefore, it is not accurate to say that the more liquid an asset, the higher its return.