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David Rubin has $100,000 to invest over 5 years. David is very risk-averse and has a target average return of 4% per year for his
David Rubin has $100,000 to invest over 5 years. David is very risk-averse and has a target average return of 4% per year for his investment over the next 5 years. He is looking at investing his money in the 3-month US Treasury BIII, which currently ylelds 4% per year. What are the pros and cons of David investing in this 3-month T-BIII In the context of his risk-proflle and his investment objective? If a company's beta were to double, would its expected rate of return double? Explain your answer. Using the five components of a nominal interest rate, explain why a US corporate bond's yleld-tomaturity (YTM) is always greater than the YTM of a US Treasury bond of similar maturity. David Rubin has $100,000 to invest over 5 years. David is very risk-averse and has a target average return of 4% per year for his investment over the next 5 years. He is looking at investing his money in the 3-month US Treasury BIII, which currently ylelds 4% per year. What are the pros and cons of David investing in this 3-month T-BIII In the context of his risk-proflle and his investment objective? If a company's beta were to double, would its expected rate of return double? Explain your answer. Using the five components of a nominal interest rate, explain why a US corporate bond's yleld-tomaturity (YTM) is always greater than the YTM of a US Treasury bond of similar maturity
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