Which Term-Structure Hypothesis Suggests That Any Long-Term Interest Rate Simply

question 30

Multiple Choice

Which term-structure hypothesis suggests that any long-term interest rate simply represents the geometric mean of current and future on-year interest rates expected to prevail over the maturity of the issue?

• A) expectations hypothesis
• B) liquidity preference hypothesis
• C) segmented market hypothesis
• D) preferred habitat hypothesis
• E) hedging pressure hypothesis

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