12. Determine whether the following scenar¬ ios are most consistent with the expecta¬ tions, segmented-markets, or preferred- habitat hypothesis.

(a) . Natalie’s sole criteria in choosing among bonds with varying maturities is the expected yield she will earn on the bonds.

(b) . Since Mitchell plans to retire in 20 years, he will purchase 20-year bonds.

(c) . M’Lissa wishes to earn a high ex¬ pected return on her investments but has a preference for five-year bonds. She will, however, consider purchasing shorter- or longer-term bonds if they offer a substan¬ tially higher yield.

(d) . Jay prefers one-year bonds even if they have a lower yield than any other bond.