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According to the unbiased expectations theory of the term structure of interest rates, A. investors prefer holding short-term securities. B. the shape of the yield
According to the unbiased expectations theory of the term structure of interest rates,
A. investors prefer holding short-term securities.
B. the shape of the yield curve is determined by investors' expectations of future short-term interest rates.
C. institutional investors' maturity preferences determine the shape of the yield curve
D. investors always expect short-term interest rates to increase.
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