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

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Definitions:

Strategic Planning Process

A systematic approach organizations use to envision a desired future and translate this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Middle Managers

Employees who manage the activities of subordinate staff while reporting to upper management, acting as a bridge within organizations.

Feedback

Information or opinions about an action or product, intended to guide future improvements or modifications.

Opportunities

Circumstances that present a chance for advancement, success, or profit.