Which Theory of Term Structure Argues That Individual Investors Have

question 55

Multiple Choice

Which theory of term structure argues that individual investors have specific maturity preferences?

• A)The unbiased expectations theory.
• B)The liquidity premium theory.
• C)The loanable funds theory.
• D)The market segmentation theory.

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Definitions:

Co-opting Antagonists

A strategy of winning over or neutralizing opposition by involving them in the decision-making process or by giving them a stake in the outcome.

Making part of Team

The process of integrating and contributing effectively to a group working towards a common goal or objective.

Personal Magnetism

The natural ability of an individual to attract or influence others owing to their charisma, energy, or personality.