7. Segmented markets theory Which of the following are characteristics of the segmented markets theory? Check all that apply. The choice of long-term versus short-term maturities is determined by a borrowers' needs, rather than by their expectation of future interest rates. The segmented markets theory explains the yield curve's shape but is not the sole explanation for the yield curve. Investors and borrowers make decisions about which securities best fit their forecasted cash flow needs. Investors and borrowers typically stay within a particular maturity market