FIN 571 Week 2 DQ 1

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•    Suppose you own $1 million worth of 30-year Treasury bonds. Is this asset riskless?

•    You own $1 million worth of 90-day Treasury bills. You “roll over” this investment every 90 days by reinvesting the proceeds in another issue of 90-day Treasury bills. Is this investment riskless?

•    Can you think of an asset that is truly riskless?