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 borrower's expectation of future interest rates, rather than by

their financial needs.

Investors and borrowers make decisions about which securities best fit their forecasted cash flow needs.

The choice of long$-$term versus short$-$term maturities is determined by an investors' 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.