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The pure expectation theory states that Future interest rates can be forecasted by looking at the term structure of interest rates because the return on

The pure expectation theory states that

Future interest rates can be forecasted by looking at the term structure of interest rates because the return on a long-term bond is essentially the average return on short-term bonds over the same period

Future interest rates can be forecasted by looking at the term structure of interest rates because the return on a short-term bond is essentially the average return on long-term bonds over the same period

Future interest rates can be forecasted by looking at past returns on similar instruments.

Future interest rates can be forecasted by looking at the behaviour of the stock market

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