The Idea That Investors Today Compare the Returns on Bonds

question 69

Multiple Choice

The idea that investors today compare the returns on bonds with differing times to maturity to see which is expected to give them the highest return is the underlying principle behind the ________ of the term structure of interest rates.

• A)expectations theory
• B)investors' viewpoint analysis
• C)segmented-markets theory
• D)yield comparison theory

---

Definitions:

Experimental Group

A group within an experiment that receives the treatment or intervention under investigation to test its efficacy or effects.

Experimental Treatment

A therapeutic approach or intervention that is being tested, typically within the context of a clinical trial, to assess its safety and effectiveness.

Performance

The act of carrying out or accomplishing an action, task, or function.

Causal Factors

Elements or conditions that bring about an effect or contribute to producing a result.