The Theory of the Yield Curve Holds That Required Returns

question 108

Multiple Choice

The theory of the yield curve holds that required returns on long-term securities tend to be greater the longer the time to maturity.

• A)expectations
• B)market segmentation
• C)preferred habitat
• D)liquidity premium

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Definitions:

Relationships

The way in which two or more concepts, objects, or people are connected, or the state of being connected.

Organisms

Any individual living entity that can react to stimuli, reproduce, grow, and maintain homeostasis.

Autotrophic Organisms

Organisms capable of synthesizing their own food from inorganic substances using light or chemical energy.

Macromolecules

Large molecules necessary for life, including proteins, nucleic acids, carbohydrates, and lipids.