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UOP FIN 571 Week 2 DQ 1

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<strong>UOP</strong> <strong>FIN</strong> <strong>571</strong> <strong>Week</strong> 2 <strong>DQ</strong> 1<br />

Suppose you own $1 million worth of 30-year Treasury bonds.<br />

Is this asset riskless?<br />

You own $1 million worth of 90-day Treasury bills. You “roll<br />

over” this investment every 90 days by reinvesting the<br />

proceeds in another issue of 90-day Treasury bills. Is this<br />

investment riskless?<br />

Can you think of an asset that is truly riskless?<br />

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