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Business, 05.03.2020 20:17 ibin246

Suppose you owned a portfolio consisting of $250,000 of long-term U. S. government bonds. Would your portfolio be riskless? Explain. Now suppose the portfolio consists of $250,000 of 30-day Treasury bills. Every 30 days your bills mature, and you will reinvest the principal ($250,000) in a new batch of bills. You plan to live on the investment income from your portfolio, and you want to maintain a constant standard of living. Is the T-bill portfolio truly riskless? Explain. What is the least risky security you can think of? Explain.

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Suppose you owned a portfolio consisting of $250,000 of long-term U. S. government bonds. Would your...
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