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According to the segmented market theory, if most investors suddenly preferred to invest in short-term securities relative to long-term securities: there would be upward pressure
According to the segmented market theory, if most investors suddenly preferred to invest in short-term securities relative to long-term securities:
there would be upward pressure on the price of long-term securities | ||
there would be downward pressure on the yield of long-term securities | ||
there would be upward pressure on the price of short-term securities | ||
the yield curve would be flat |
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