You Invest All of Your Money in One Year T-Bills

question 80

Multiple Choice

You invest all of your money in one year T-bills.Which of the following statements is/are correct?
I.Your nominal return on the T-bills is riskless.
II.Your real return on the T-bills is riskless.
III.Your nominal Sharpe measure is zero.

• A) I only
• B) I and III only
• C) II only
• D) I, II and III

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Definitions:

Output

The quantity of products or services produced and provided by an entity, reflecting its productivity levels.

Competitive Market

A market structure marked by a high level of competition among businesses, where no single entity has the power to influence market prices significantly.

Government-operated Firms

Businesses owned and managed by a government in order to provide goods or services to the public.

Economic Efficiency

An arrangement whereby resources are utilized in the most efficient way to increase the output of goods and services at the minimum possible cost.