Problem 1: Suppose you own $1 million worth of 30-year Treasury bonds. Is this asset riskless? Why or why not?
Problem 2: You own $1 million worth of 90-Day Treasury bills ("T-bills"). You "roll over" this investment every 90 days by reinvesting the proceeds in another issue of 90-day T-bills. Is this investment riskless - why? Is it more or less risky than the investment in question A?
Problem 3: Can you name an asset that is truly riskless? An asset besides cash?