When Expectations Theory Is Combined with the Liquidity Theory, the Yield

question 51

True/False

When expectations theory is combined with the liquidity theory, the yield on a security will always be equal to the yield from consecutive investments in shorter-term securities over the same investment horizon.
​

---

Definitions:

Sensory Neurons

Nerve cells responsible for converting external stimuli from the organism's environment into internal electrical impulses.

Interneurons

Specialized neurons that act as intermediaries, transmitting impulses between other neurons, particularly within the brain and spinal cord.

Efferent

Nerve fibers that carry signals away from the central nervous system to effectors such as muscles and glands.

Afferent

Refers to the conveyance of sensory information from the peripheral body parts to the central nervous system.