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Which of the following portfolio is risk-free? A) A portfolio consisting of $300,000 worth of US TIPS. B) A portfolio consisting of $300,000 worth of
Which of the following portfolio is risk-free?
A) A portfolio consisting of $300,000 worth of US TIPS.
B) A portfolio consisting of $300,000 worth of long-term U.S. T-bonds.
C) A portfolio consisting of $300,000 worth of 30-day T-bills. Every 30 days the T-bill matures, and you reinvest the principal in a new batch of T-bills.
D) A portfolio consisting of $300,000 worth of AAA-rated U.S. corporate bonds.
E) A portfolio consisting of $300,000 worth of U.S. corporate junk bonds.
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