a. Suppose you own $1 million worth of 30-year Treasury bonds. Is this asset riskless? Explain your answer. b. You own $1 million worth of 90-day Treasury bills. You “roll over” this investment every 90 days by reinvesting the proceeds in another issue of 90-day Treasury bills. Is this investment riskless? Explain your answer. c. Can you think of an asset that is truly riskless? Discuss it.d. Common stock A has an expected return of 10%, a standard deviation of future returns of 25%, and a beta of 1.25. Common stock B has an expected return of 12%, a standard deviation of future returns of 15%, and a beta of 1.50. Which stock is riskier? Explain.
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Need math calculation on part D.
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