Which of the following is true according to the pure expectations theory? Forward rates: P-639 a. Exclusively

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Which of the following is true according to the pure expectations theory? Forward rates: P-639

a. Exclusively represent expected future short rates.

b. Are biased estimates of market expectations.

c. Always overestimate future short rates.

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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