Questіоn 3a(350 words): Comment on the bond’s rіsk and discuss if it can be seen as a risk free security. Consider the different risks that Australian bond investors are exposed to and which are or aren’t significant. Use academic references to support your answer. Question 3b (200words): For the purpose of an investor trying to make a portfolio allocation decision using Markowitz meanvariance optimization, a risk free rate is needed. What riskfree rate would you recommend that the investor use? Outline the rationale for your decision. Use academic references to support your answer.
Originally posted 2017-09-30 22:16:38.