1. Explain the advantage the bottom-up approach to portfolio construction has over the top-down approach.

i. Comment on three differences between money market securities and capital market securities.

ii. Bruno Securities Company sold 91-day GoG Treasury bills to investors at a price with an agreement to buy them back after 30 days at a slightly higher price.

(a) What kind of money market transaction is described above?

(b) What is the benefit of the transaction to the securities company? What is the benefit to the investors?