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Suppose there are two portfolios, one made up of U.S. agencies with an average maturity of 6 months and an interest rate of 4%. The
Suppose there are two portfolios, one made up of U.S. agencies with an average maturity of 6 months and an interest rate of 4%. The second portfolio is made up of U.S. Treasuries with an average maturity of two years and an interest rate of 4%. Which portfolio would you recommend and why? (grading will be based not on your choice, but upon your explanation of why you made that choice) (5 points)
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