1. Suppose you owned a portfolio consisting of P5,000,000 of long-term Philippine governments bonds. a....
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1. Suppose you owned a portfolio consisting of P5,000,000 of long-term Philippine governments bonds. a. Would your portfolio be riskless? Explain b. Now suppose the portfolio consistent of P5,000,000 30days Treasury wils. Every 30days your bills mature and you will reinvest the principal of P5,000,000 in a new treasury bills. You plan to live on the investment income from your portfolio and you want to maintain a constant slandard living. Is the treasury bills truly riskless? Explain
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