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Oduvanchick [21]
2 years ago
13

1. Suppose you owned a portfolio consisting entirely of long-term U.S. government bonds. Would your portfolio be riskless?

Business
1 answer:
Ilya [14]2 years ago
7 0

Answer:

<em>In theory, both are riskless but in practicality they aren't completely risk free.</em>

Explanation:

<em>In investment theory</em>, the investment in government bonds is <em>riskless </em>, irrespective of the investment maturity period because they are backed by the government.

However, <em>in practicality</em> every investment involves risk whether it's a short term or long term. However, a short term investment like the one specified in <em>statement 2</em> involves lower time frame and thereby lower volatility, hence it implies <em>lower risk</em>. The investment specified in <em>statement 1</em> is of longer term and hence can involve higher volatility, hence it implies <em>higher risk.</em>

<em><u>Note</u></em><em>- All the governments are prone to risk practically</em> because they are also part of the global financial and economic system and hence, they have to manage their budget balances prudently. Every investment thereby involves <em>risk</em>, it's just the <em>financial backing</em> of the <em>government financial</em> <em>instruments</em> which makes them less risky as compared to the other financial instruments.  

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Temka [501]

Please the remaining part of the question below :

1.Amount a business earns after paying all expenses and costs associated with its sales and revenues.

2.An examination of an organization’s accounting system and records that adds credibility to financial statements.

3.Principles that determine whether an action is right or wrong.

4.Accounting professionals who provide services to many clients.

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Answer:

1.Amount a business earns after paying all expenses and costs associated with its sales and revenues. - Net income (G)

2.An examination of an organization’s accounting system and records that adds credibility to financial statements. - Audit (A)

3.Principles that determine whether an action is right or wrong. - Ethics (C)

4.Accounting professionals who provide services to many clients.- Public accountants (F)

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Explanation:

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3 years ago
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Furkat [3]

Answer:

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Explanation:

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2 years ago
A bank has three assets. It has $75 million invested in consumer loans with a three-year duration, $39 million invested in T-bon
dalvyx [7]

Answer:

A. 6.50 years

Explanation:

Let C represent consumer loans,

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t  represent T-bills

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d= duration of ....

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= 1.7046 + 4.728 + 0.0682

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2 years ago
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Answer:

is a medium of exchange but not a unit of account

3 0
2 years ago
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