Suppose you owned a portfolio consisting of $250,000 of U.S. government bonds with a maturity date of 30 years. Would your portfolio be risk less? What if your portfolio consisted of $250,000 of 30-day Treasury bills? Every 30 days your bills mature, and you reinvest the principle ($250,000) in a new batch of bills. Assume that you live on the investment income from your portfolio and that you want to maintain a constant standard of living. Is your portfolio truly risk less? Can you think of any asset that would be completely risk less? What security comes closest to being risk less? Explain.
A management consultant said that strategic leaders are concerned with vision and mission, while strategic managers are concerned with strategy.
- Do you agree/disagree?
Is the world really changing faster today, or do people just assume so?