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Commerce · Q23

Financial Management

Graduate and Post Graduate · Commerce · question 23

Q23

Which of the following would be considered a risk-free investment?

A.
Gold
B.
Equity in a house
C.
High-grade corporate bonds
D.
Treasury bills
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Treasury bills would be considered a risk-free investment. A Treasury Bill (T-Bill) is a short-term debt obligation backed by the U.S. Treasury Department with a maturity of one year or less.