Short-Answer Questions: 1.If the yield curve includes investor expectations, then a positively sloped yield curve would reflect
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Short-Answer Questions:
1.If the yield curve includes investor expectations, then a positively sloped yield curve would reflect what type of expectations about future interest rates?
2.If the yield curve includes investor expectations, then a negatively sloped yield curve would reflect what type of expectations about future interest rates?
3.How is an implied forward rate used as a cutoff rate?
4.Define the preferred habitat theory.
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