The state of Kentucky's revenue has not grown at the same rate as its entitlement expenditures. You, as a financial advisor, has been asked to appear before a Kentucky legislative committee to explain how Kentucky might increase the investment income from the states short term (within a fiscal year) investment portfolio in order to enhance the state's spendable revenues. As part of your presentation, the committee chair also asked you to explain the investment objectives that should guide the states investment policy as well as any investment risks that they should attempt to minimize if they draft new legislation to guide the state's investment policies while trying to increase investment income.