Given an upward slpoing yield curve, the marketable securities in a company's porfolio, assumed to be held for emergencies, should:

Answer Options:

1. consist mainly of short-term Tearusy bills to minimize rate risk

2. consist mainly of long-term Tearusry bonds to minimize interest rate risk

3. consist mainly of short-term securities because they pay higher rates

4. consist mainly of long-term securities because they pay higher rates