Suppose you owned a portfolio consisting of $250,000 of long-term U.S. government bonds.
a.
To explain: The possibility of the portfolio being riskless.
Portfolio:
The portfolio refers to a group of financial assets like bonds, stocks, and equivalents of cash. The portfolio is held by the investors and financial users. A portfolio is constructed according to the risk tolerance and the objectives of the company.
Thus, it is not possible for a portfolio to be riskless.
b.
To explain: The possibility of Treasury bill portfolio being riskless.
The treasury bills portfolio can also be not truly riskless.
c.
To explain: The possible least risky security.
Thus, the Treasury inflation-protected securities are the least risky security.
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Get SolutionsFundamentals of Financial Management, Concise Edition (MindTap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Probability and Statistics for Engineering and the Sciences
Foundations of Business (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Corporate Financial Accounting
Financial & Managerial Accounting
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Cornerstones of Financial Accounting
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Principles of Microeconomics (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
Principles of Economics (MindTap Course List)
Accounting Information Systems
Financial And Managerial Accounting
College Accounting, Chapters 1-27
Essentials of Economics (MindTap Course List)
Financial Accounting
ECON MACRO
Management, Loose-Leaf Version
MKTG 12:STUDENT ED.-TEXT
Contemporary Marketing
Intermediate Accounting: Reporting And Analysis
Accounting Information Systems
College Accounting (Book Only): A Career Approach
Managerial Accounting: The Cornerstone of Business Decision-Making
Financial & Managerial Accounting
Financial Accounting
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Pkg Acc Infor Systems MS VISIO CD
Exploring Economics
Statistics for Business & Economics, Revised (MindTap Course List)
College Accounting (Book Only): A Career Approach
Principles of Macroeconomics (MindTap Course List)
Accounting (Text Only)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Practical Management Science
Cornerstones of Cost Management (Cornerstones Series)
Corporate Financial Accounting
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Macroeconomics
Economics (MindTap Course List)
Economics For Today
Microeconomics
Survey of Accounting (Accounting I)
Purchasing and Supply Chain Management
Microeconomics: Private and Public Choice (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)
Managerial Accounting
Micro Economics For Today
Economics: Private and Public Choice (MindTap Course List)
Understanding Management (MindTap Course List)