For an investor needing high liquidity with low market risk, which investment is most appropriate?

Treasury bills are an appropriate choice for an investor needing high liquidity with low market risk due to their nature as short-term government securities. These instruments are issued by the federal government, which significantly reduces the risk of default compared to corporate bonds and convertible bonds.

Investors can purchase Treasury bills with maturity periods of a few days to a year, allowing them quick access to their capital while still enjoying the safety associated with government-backed securities. The liquidity of Treasury bills is high, as they are easily tradable in the financial markets, allowing investors to convert them to cash without significant loss of value.

In contrast, corporate bonds and convertible bonds typically carry more market risk due to the credit risk associated with the issuing companies. High-yield savings accounts, while also liquid and offering some level of safety, usually provide lower returns than Treasury bills and might not be as ideal when specifically seeking the combination of high liquidity and minimal risk in the context of market exposure.

Thus, the combination of safety, liquidity, and minimal market risk makes Treasury bills the most suitable option for this investment profile.