Why is it not economically beneficial "stretching out" the maturity of your investment? It increases risks Reduces liquidity It decreases productivity When long-term rates are lower than shorter-term rates, the market is expecting short-term rates to Increase Fall Remain the same None of the above A firm has two plans: plan A and plan B. If the probability that Plan A would return $10,000 is 0.80 and the probability that plan B will fail recording a loss of $10,000 is 0.20, what is the expected value of the firm? "Long-term interest rates should be higher than short-term rates because they are less liquid" Which interest rate theory supports this assertion Liquidity premium theory Market segmentation theory Expectation hypothesis Efficiency hypothesis