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Select the right answer 5. According to the market segmentation theory of Interest rates, a. Investors prefer certain maturities and will not normally switch out
Select the right answer 5. According to the market segmentation theory of Interest rates, a. Investors prefer certain maturities and will not normally switch out of those maturities. b. Investors are indifferent between different maturities if the long-term rates are equal to the average of current and expected future short-term rates. c. Short-term rates will always be lower because they are riskier. d. Long-term rates are higher than the average of current and expected future short-term rates
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