1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aleksandr82 [10.1K]
3 years ago
6

Suppose you owned a portfolio consisting of $250,000 of long-term U.S. government bonds. Would your portfolio be riskless? Expla

in. Now suppose the portfolio consists of $250,000 of 30-day Treasury bills. Every 30 days your bills mature, and you will reinvest the principal ($250,000) in a new batch of bills. You plan to live on the investment income from your portfolio, and you want to maintain a constant standard of living. Is the T-bill portfolio truly riskless? Explain. What is the least risky security you can think of? Explain.
Business
1 answer:
hammer [34]3 years ago
6 0

Answer and Explanation:

An investment when it would be risk free in that case both the principal and the interest amount are to be paid within the prescribed time. Also when the U.S government bonds i.e. long term would be issued by the government have a lesser interest rate as compared with the other riskier securities available at the market place this is because as the government would default next to zero in case of the short term it would make the default when there are extreme situations arise.

Therefore in the short term it would be risk free

But in the long run, the person is based on the treasury bills returns so that he or she could equate the similar standard of living also it would not suffice when the inflation rises

Therefore the less risky investment would be of Government bonds

You might be interested in
Velco purchased a delivery truck at the beginning of Year 1 at a cost of $60,000. The truck is estimated to have a useful life t
Alenkinab [10]

Answer:

$10,000

Explanation:

Depreciation of an asset is the systematic allocation of estimated cost to an asset over time. It is added over the years to get the accumulated depreciation that is netted off the cost to get the net book value.

It is given as

Depreciation = (Cost - Salvage value)/Estimated useful life

Depreciation expense for Year 1 (the first year of the asset's life) under the straight-line method would be

= ( $60,000 - $10,000 ) / 5

= $50,000/5

= $10,000

5 0
3 years ago
What is a good sport or activity to do in high school that looks good on your college application?
nekit [7.7K]

Answer:

football,volleyball,tennis, basketball or

singing,dancing e.t.c

3 0
3 years ago
When we are doing the double entry for the closing inventory, why do we credit the inventory? I understand why we debit the clos
anastassius [24]

Answer:

Debiting in this case means to add to the inventory. Therefore, crediting means that inventory was used up when closing inventory.

Explanation:

A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. ... A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account.

3 0
3 years ago
2. Statistically, consumers tell more people about negative experiences in business encounters than about positive experiences.
sergey [27]
I believe the answer Is b, false. Bad experiences leave a bigger impression than good experiences. Kind of like how you can remember more hurtful things people have said to you than nice things
4 0
3 years ago
6.
Vikki [24]

Answer:

Brand performance

Explanation:

Brand performance is the concept that compares and contrasts the goals a brand sets and how it meets those targets.

Therefore, brand performance is the concept that describe how well a market fulfills customers needs.

The answer is D

6 0
3 years ago
Other questions:
  • How are most travel itineraries arranged?
    15·1 answer
  • What is product market?
    5·1 answer
  • A desktop computer now sells for 15% less than it did last year. the current price is $425. what was the price of the computer l
    11·1 answer
  • Richards Company manufactures a single product. All raw materials used are traceable to specific units of product. Current infor
    9·1 answer
  • The Dean's laissez faire attitude hit its zenith when he had missed five department chair meetings in a row despite the pressing
    15·2 answers
  • f the government put a price floor of $ 11.75 $11.75 on both of the markets, which market would have a greater surplus or shorta
    14·1 answer
  • What form of payment is directly tied to a customer's bank account?
    5·1 answer
  • The shape of the production function reflects the law of diminishing marginal product of labor.a. Trueb. False
    11·1 answer
  • Evergreen Company sells lawn and garden products to wholesalers. The company’s fiscal year-end is December 31. During 2021, the
    7·1 answer
  • Recognizing deferred tax assets and liabilities is referred to as ______ tax allocation. Multiple choice question. intraperiod d
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!