Treasury bills are commonly viewed as risk-free assets

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Reference no: EM132070495

US Government's Treasury bills are commonly viewed as risk-free assets because

A. their short-term nature makes their values insensitive to interest rate fluctuations.

B. the inflation uncertainty over their time to maturity is negligible.

C. their term to maturity is identical to most investors' desired holding periods.

D. both their short-term nature makes their values insensitive to interest rate fluctuations and the inflation uncertainty over their time to maturity is negligible.

E. both the inflation uncertainty over their time to maturity is negligible and their term to maturity is identical to most investors' desired holding periods.

Reference no: EM132070495

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