B. You own $1 million worth of 90-Day Treasury bills ("T-bills"). You "roll over" this investment every 90 days by reinvesting the proceeds in another issue of 90-day T-bills. Is this investment riskless - why? Is it more or less risky than the investment in question A?
C. Can you name an asset that is truly riskless? An asset besides cash?
This question was asked on Apr 17, 2011.
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