Suppose you owned a portfolio consisting of $250000 of U.S. government bonds with a maturity date of 30 years. Would your portfolio be riskless? What if your portfolio consisted of $250000 of 30-day Treasury bills? Every 30 days your bills mature and
Suppose you owned a portfolio consisting of $250000 of U.S. government bonds with a maturity date of 30 years. Would your portfolio be riskless? What if your portfolio consisted of $250000 of 30-day Treasury bills? Every 30 days your bills mature and you reinvest the principle ($250000) in a new batch of bills. Assume that you live on the investment income from your portfolio and that you want to maintain a constant standard of living. Is your portfolio truly riskless? Can you think of any asset that would be completely riskless? What security comes closest to being riskless? Explain.I am using financial management by brigham and ehrhardt