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The Expectation Theory of interest rate implies that A, a current 5 year security should return the same as 5 consecutive 1 year securities B.

The Expectation Theory of interest rate implies that

A, a current 5 year security should return the same as 5 consecutive 1 year securities

B. The investors expect economic condition to worsen over time

C. Investors have a preference for short term securities

D. Buying 5 1 year securities today will return the same as 1 5 year security.

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