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Suppose you owned a portfolio consisting of $250,000 of US government bonds with a maturity of 30 years. a. Would your portfolio be riskless? b.

Suppose you owned a portfolio consisting of $250,000 of US government bonds with a maturity of 30 years. a. Would your portfolio be riskless? b. Now suppose you hold a portfolio consisting of $250,000 of 30-day Treasury bills. Every 30 days your bills mature, and you reinvest the principal ($250,000) in a new batch of bills. Assume that you live on the investment income from your portfolio and that you want to maintain a constant standard of living. Is your portfolio truly riskless? c. Can you think of any asset that would be completely riskless? What security comes closest to being riskless? Explain

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