Purchase Solution

T-Bills and risk less assets

Not what you're looking for?

Ask Custom Question

Suppose you own $1 million worth of 30-year Treasury bonds. Is this asset riskless?
b. You own $1 million worth of 90-day Treasury bills. You â??roll overâ? this investment every
90 days by reinvesting the proceeds in another issue of 90-day Treasury bills. Is this
investment riskless?
c. Can you think of an asset that is truly riskless?

Purchase this Solution

Solution Summary

T-Bills and risk less assets

Solution Preview

a. In theory, we consider all bonds issued by a government to be riskless, however, in practice, there are slight chances that countries default on their bonds, especially if the bond is held over a long period of time. This ...

Purchase this Solution


Free BrainMass Quizzes
Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.