FIN 571 TUTOR Career Path Begins/fin571tutor.com FIN 571 TUTOR Career Path Begins/fin571tutor.com | Page 23

30.
Which one of these equations is an accurate expression of the
balance sheet?
31.
The financial statement summarizing a firm's accounting
performance over a period of time is the:

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FIN 571 Week 2 DQ 1

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when posting your answers to WK2 DQ1.

Suppose you own $1 million worth of 30-year Treasury
bonds. Is this asset riskless?

You own $1 million worth of 90-day Treasury bills. You
“roll over” this investment every 90 days by reinvesting the
proceeds in another issue of 90-day Treasury bills. Is this
investment riskless?
Can you think of an asset that is truly riskless?
-----------------------------------------------------------------------------FIN 571 Week 2 DQ 2

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Suppose rf is 5% and rM is 10%. According to the SML and the
CAPM, an asset with a beta of −2.0