According to the Expectations Theory of Term Structure,if Investors Believed

question 102

Multiple Choice

According to the expectations theory of term structure,if investors believed that the average of the expected future short-term yields was greater than the long-term yield for a holding period,they would act so as to:

• A) drive down the price of the short-term security and drive up the price of the long-term security.
• B) drive up the price of the short-term security and drive down the price of the long-term security.
• C) drive up the prices of both the short-term and long-term securities.
• D) drive down the prices of both the short-term and long-term securities.

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Definitions:

Respiratory Distress Syndrome

A medical condition often occurring in premature infants, characterized by difficulty breathing due to underdeveloped lungs.

Teratogens

Factors or agents responsible for causing congenital defects or developmental problems in an embryo or fetus.

Preterm Infants

Babies born before 37 weeks of gestation, often facing various health challenges due to underdevelopment.

Parental Behavior

Parental behavior includes the actions and responses adopted by parents in the process of raising and nurturing their children.