1. Suppose that the government issues a riskless short-term Treasury bill that will pay $100 in two months. The issuance price of the Treasury bill is $90. Which of the following statements regarding the monthly returns of the bill over the next two months is correct?

   	A.	The correlation between the first months return and the second months return is negative.
   	B.	The second months return is not predictable by the first months return.
   	C.	The Treasury bill price will follow a random walk process because the second months return does not depend on the first months return.
   	D.	The monthly returns of the bill over the next two months are positively serially correlated.