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The expectations theory of the term structure of interest rates states that A. forward rates exceed the expected future interest rates. B. forward rates are

  1. The expectations theory of the term structure of interest rates states that

    A.

    forward rates exceed the expected future interest rates.
    B.

    forward rates are determined by investors' expectations of future interest rates.
    C.

    none of the options.
    D.

    investors would prefer a liquid investment rather than an illiquid investment.

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