Q&A Hero

Question

You invest all of your money in 1-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 ratio is zero.
A. I only
B. I and III only
C. II only
D. I, II, and III

Answer

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