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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. That investors expect economic condition will worsen over time

C. Investors have a preference for short- term securities

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

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