RISK FREE INVESTMENTpavan1001
Suppose you owned a portfolio of U.S. government bonds with a maturity date of 30 years. Would your portfolio be riskless?
What if your portfolio of 30-day Treasury bills? Every 30 days your bills mature, and you reinvest the principal in a new batch. . Is your portfolio truly riskless?
Can you think of any asset that would be completely riskless? Which security is closest to being riskless? Explain.
- 8 years ago
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